TaxTMI 
TaxTMI 
TaxTMI 
2023 (9) TMI 760
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....n 9th July 1996 retaining the said assets. Subsequently, the case was scrutinized under Section 143(3) of the Act and an assessment order came to be passed. The assessee challenged the order before the Commissioner of Income-tax (Appeals) [CIT(A)]. Thereafter, the order of the Assessing Officer ("AO") was challenged before the ITAT. By an order dated 24th September 2014, the ITAT decided the issue in favour of assessee. No further appeal under Section 260A of the Act was filed by the Department. Therefore, the order dated 24th September 2014 of the ITAT attained finality. The AO had further submitted that there is no outstanding demand against assessee. In view of the Revenue not following the order of the ITAT, an application was filed by Petitioner before the Principal Commissioner of Income Tax (PCIT). By an order dated 31st December 2019 passed under Section 132B of the Act, the PCIT directed as under: "On the basis of the report submitted by the Assessing Officer, Jt. C.I.T. Range-20(3), Mumbai, the above-mentioned seized gold items weighing 1545.200 gms. Of gold and cash of Rs. 2,60,000/- is hereby released to the Smt. Vinoda B Jain, Legal Heir of Late Shri Bharat Jethmal j....
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....rking is given as under: Particulars Amount (Rs.) A. Pre-assessment period 10.01.1997 to 24.09.2014 1. 10.01.1997 to 31.05.2002 @ 15% for 65 months 211250 2. 01.06.2002 to 07.09.2003 @ 8% for 16 months 27733 3. 01.10.2003 to 24.09.2014 @ 6% for 132 months 171600 Total 410583 B. Post-assessment period 25.09.2014 to 06.09.2023 01.10.2014 to 06.09.2023 @ 6% for 108 months 140400 C. GROSS TOTAL INTEREST U/S 132(4)(b) 550983 6. Mr. Porwal submitted that Section 244A(1A) inserted by the Finance Act, 2016 with effect from 1st June 2016 provides that assessee shall be entitled to receive, in addition to the interest payable under Sub-section (1) of Section 244A, an additional interest of such amount of refund calculated @ 3% p.a., i.e., a total of 9% p.a. Therefore, Petitioner should be paid interest @ 12% p.a. at least instead of 6% for the post-assessment period, i.e., from 25th September 2014 the date on which the order of the ITAT was passed. 7. Mr. Sharma for the Revenue submitted that Sub-section (1A) of Section 244A applies only to refund arising as a result of giving effect to an order under Sectio....
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....assed as stated in the affidavit-in-reply only after the matter was listed at least four times and repeated adjournments were taken by the Revenue and after the Court put pressure on the Revenue. The refund is being given with interest after a substantial lapse of time and, in our view, Petitioner should be entitled to compensation for the inordinate delay. 10. A Division Bench of this Court in Sanjeev kumar v. Union of India 2022 (140) taxmann.com 598 (Bombay)., after following principles and law laid down by the Apex Court in the case of Sandvik Asia Limited, Pune v. CIT 2006 (150) Taxman 591 SC., held that 'it is not the case of interpretation of 132B(4)(b) of the Act or under the said provision, the Courts would restrict obligation and liability of the Revenue to pay interest or compensation up to the date of payment. The question for consideration of the Court raised by Petitioner is whether Respondents can refuse to compensate the Petitioner for wrongfully withholding the cash amount of Petitioner though by the assessment order the liabilities of Petitioner's were declared as NIL beyond the date of the assessment order.' The Court held that Petitioner in that c....
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....the statute, such provision has to govern the field. 36. In our view the principles laid down by the Hon'ble Supreme Court of India in a case of Sandvik Asia Ltd. (supra) would apply to the facts of this case. The respondents were solely responsible for the gross delay in not releasing the cash amount of the petitioners under section 132B(4)(b) of the Act, 1961 and thus cannot refuse the payment of compensation to the petitioners for wrongfully withholding the said amount from the date of assessment order till payment. 37. Delhi High Court in a case of Ajay Gupta (supra) has held that, since the payment was made after the outer limit of the period prescribed under section 132B(4)(b) of the Act, 1961, the Petitioner would be entitled to compensation on account of delay for the subsequent period. The Delhi High Court followed the judgment of the Hon'ble Supreme Court in a case of Sandvik Asia Ltd. (supra) and directed the revenue to pay compensation/damages to the assessee on the balance sum for the subsequent period at the rate of 9% p.a. In our view, the principles laid down by the Delhi High Court in a case of Ajay Gupta (supra) after adverting to the judgment of San....
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....ners though by the assessment order the liabilities of the petitioners were declared as nil beyond the date of assessment order. The judgment of the Hon'ble Supreme Court in a case of Dilip Kumar & Company (supra) thus would not advance the case of the revenue." (emphasis supplied) In this case also there has been an inordinate delay. Notwithstanding the order of the ITAT which attained finality on 25th September 2014, the Revenue did not consider it fit to return the cash of Rs. 2,60,000/- that was seized on or about 9th July 1996. Moreover, even after the PCIT passed the order on 31st December 2019 under Section 132B of the Act, the Revenue did not consider it fit to process and refund the amount. Even after the Petition was filed and served and the lawyer appeared for the Revenue, still the Revenue did not consider it fit to return the money. Therefore, in our case this is nothing but a clear case of high handedness on the part of the officers of the Revenue. 11. In our view, this is a fit and proper case in which action should be initiated against all the officers concerned who were all in charge of this case at the appropriate and relevant point of time and particularly a....