TaxTMI 
TaxTMI 
2018 (5) TMI 714
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....ct of the Block Assessment for the period 01.04.1988 to 27.03.1998. 3. The above tax case appeal has been admitted on the following substantial question of law : "1. Whether on the facts and in the circumstances of the case, the the Income Tax Appellate Tribunal was right in law in not considering the appeal on the legal issue of leviability of interest u/s. 158BFA(1) without appreciating the legal issues could be raised at any stage? 2. Whether on the facts and in the circumstances of the case, the the Income Tax Appellate Tribunal was right in law in upholding the interest u/s. 158BFA(1) even for the period of delay in filing the return of income, caused due to delay in obtaining copies of the seized materials from the Income Tax Dep....
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....r dated 30.03.2001. Aggrieved by the same, the assessee filed an appeal before the Tribunal in June 2008. When the Assessing Officer gave effect to the order of Commissioner of Income Tax (Appeals), by order dated 18.05.2001, there was no levy of interest under section 158BFA(1). 6. The Tribunal, by order dated 28.02.2002, remanded two issues to the Assessing Officer for consideration and rejected the ground raised in respect of levy of interest under section 158BFA(1). Pursuant thereto, an order under section 154 was passed levying interest under section 158BFA(1) for 21 months i.e. from 20.07.1998 to 04.05.2000. 7. The question would be whether the levy of such interest for a period of 21 months was just and proper. 8. Though the learn....
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....have to examine the facts of the case to see as to whether the assessee was liable for payment of interest from 20.07.1998. 13. We are convinced to take a stand in favour of the assessee for the reason that the assessee was requesting for copies of the seized documents for nearly a year and the copies of those documents were furnished to the assessee between 18.06.1999 to 22.06.1999. Thus, the question would be as to how the interregnum period should be treated for the purpose of levying interest under section 158BFA(1). 14. On a reading of statutory provision one gets an impression that no such plea is entertainable and limitation does not stop and continues to run upon issuing notice under section 158BC. However, we cannot ignore the pr....