OM PRAKASH AGRAWAL Vs. UNION OF INDIA

JUDGEMENT

(1.) PETITIONER has sought following reliefs:-

(2.) THE learned counsel for petitioner submitted that petitioner is entitled for statutory interest from the date of seizure till the date the aforesaid amount was refunded. As per statement made by the respondents, a cheque has been issued by the respondents. The petitioner submitted that the aforesaid cheque has not been received by the petitioner till this time. It is submitted that the petitioner is entitled for the statutory interest on the aforesaid amount from the date of seizure till its payment to the petitioner. The petitioner also prays for interest on the amount of interest which fell due on 31.7.2008 from the respondents.

(3.) TO appreciate aforesaid contentions, we have perused the relevant provisions. For ready reference, sub-section 4 of section 132B of the Income Tax Act, 1961 is referred which reads thus:- Section 132B. APPLICATION OF SEIZED OR REQUISITIONED ASSETS: (4) (a) The Central Government shall pay simple interest at the rate of one-half per cent for every month or part of a month on the amount by which the aggregate amount of money seized under section 132 or requisitioned under section 132A, as reduced by the amount of money, if any, released under the first provision to clause (i) of sub-section (1), and of the proceeds, if any, of the assets sold towards the discharge of the existing liability referred to in clause (i) of sub-section (1), exceeds the aggregate of the amount required to meet the liabilities referred to in clause (i) of sub-section (1) of this section. (b) Such interest shall run from the date immediately following the expiry of the period of one hundred and twenty days from the date on which last of the authorisations for search under section 132 or requisition under Section 132A was executed to the date of completion of the assessment under section 153 A or under Chapter XIV-B.