1995 (3) TMI 18

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....of the Income-tax Act, 1961 (" the Act "). The raiding party seized cash amount of Rs. 51,000. On March 15, 1984, the Income-tax Officer, Central Circle, Rajkot, passed an order releasing an amount of Rs. 43,250 but retained Rs. 7,750. An assessment order was passed on March 15, 1984, wherein it was observed by the Income-tax Officer that the petitioner had failed to explain an amount of Rs. 16,474 in connection with two cash entries of Rs. 1,474 and Rs. 15,000, respectively, in the accounts of Asha Industries and Esvi Industries, respectively, in which the petitioner was a partner. The said amount was, therefore, added and the petitioner was held liable to pay tax of Rs. 4,950. According to the petitioner, the said amount was tax liability....

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....al Board of Direct Taxes, Income-tax Department, New Delhi, for non-payment of interest. But the Chairman also did not reply. In these circumstances, the petitioner was constrained to approach this court. Initially, notice was issued and thereafter the matter was admitted. Today the matter was called out for final hearing. Mr. D. U. Shah, learned counsel for the petitioner, submitted that it is no doubt true that the Department has paid an amount of Rs. 7,750 to which the petitioner was entitled. He, however, submitted that the petitioner is entitled to interest in accordance with the provisions of section 132B(4). The relevant part of section 132B reads as under : " Application of retained assets.-- (1) The assets retained under sub-....