COMMISSIONER OF INCOME TAX Vs. ISLAMIC ACADEMY EDUCATION

JUDGEMENT

(1.) This appeal is by the Revenue challenging the order passed by the Tribunal which has upheld the appeal of the Assessee and dismissed the appeal filed by the Revenue.

(2.) The Assessee-Respondent filed a return of income for the period 2004-05 declaring nil income in the status of trust. On 21st Sept., 2005, a search was conducted in the premises of the Assessee under Section 132 of the IT Act, 1961 (for short, the Act). Subsequently, notice under Section 153A of the Act was issued. On 27th Feb., 2006, Assessee filed a return in response to the said notice declaring the total income of Rs. 2,51,41,336 in the status of association of persons (AOP). As per the return of income filed by the Assessee, the Assessee was liable to pay self-assessment tax of Rs. 1,02,63,449. However, the Assessee failed to pay the said tax. He requested the authorities to adjust the said amount of tax out of the seized cash from the trust office and also from the chairman's residence during the course of search. Accordingly it was adjusted. On 24th Dec., 2007, the assessment order came to be passed in which the assessing authority determined the income of the Assessee at Rs. 61,16,710 in the status of AOP. In terms of the assessment order, the Assessee was entitled for refund of Rs. 74,67,137 as there was excess payment.

(3.) On 22nd Jan., 2008, an order came to be passed under Section 154 enhancing the interest under Section 244 of the Act at Rs. 8,79,152 as a result of recalculation of the interest under Section 234A of the Act.