C.B. KOYAKUTTY Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) The petitioner challenges Ext. P14 insofar as it refuses to grant interest on the amount of Rs. 57,062/- which was withheld by the respondents and also for a direction to the respondents to grant interest on the aforesaid amount from 25.10.1998 till 8.3.2002 together with interest till the date of payment.

(2.) A sum of Rs. 1,09,400/- was seized from the petitioner on 27.9.1986 relevant to the assessment year 1987-88 by the customs authorities. This was subsequently handed over to the Enforcement Director, Calicut The aforesaid amount together with interest of Rs. 9,907/- totaling to Rs. 1,19,307/- was taken over by the respondent department on 25.10.1988. The aforesaid amount was deposited in the P.D. Account of the 2nd respondent. Later on 17.2.89, Ext. P1 order was passed appropriating the entire amount towards tax, interest and penalty.

(3.) Assessment proceedings were initiated for the year 1987-88 and it was completed resulting in a demand of Rs. 62,245/- which was adjusted against the P.D. Account. The appeal preferred by the petitioner against the assessment order before the Commissioner of Income Tax (Appeals) was allowed and the second appeal before the Income Tax Appellate Tribunal was dismissed. Consequently by order dated 26.7.99, the entire amount adjusted from the P.D Account i.e. Rs. 62,245/- together with interest of Rs. 83,969/- were found to be refundable to the petitioner and accordingly refund order was issued.