Clause (b) of Section 132B(4) of the Act clearly shows that where the aggregate of the amounts retained under Section 132 of the Act exceeds the amounts required to meet the liability under Section 132B(1) (i), the department is liable to pay simple interest at the rate of fifteen percent on expiry of six months from the date of the order under Section 132(5) of the Act to the date of the regular assessment or re-assessment or the last of such assessments or reassessments, as the case may be. It is true that in the regular assessment done by the Assessing Officer, the tax liability for the relevant period was found to be higher and, accordingly, the seized cash under Section 132 of the Act was appropriated against the assessee’s tax liability but the fact of the matter is that the order of the Assessing Officer was over-turned by the Tribunal finally on 20.2.2004. As a matter of fact, the interest for the post assessment period i.e. from 4.3.1994 until refund on the excess amount has already been paid by the department to the assessee. The department denied the payment of interest to the assessee under Section 132B(4) (b), according to Mr. Arijit Prasad, learned counsel for the revenue on th ground that the refund of excess amount is governed by Section 240 of the Act and Section 132B(4) (b) of the Act has no application. But, in our view, Section 132B(4) (b) deals with pre-assessment period and there is no conflict between this provision and Section 240 or for that matter 244 (A). The former deals with pre assessment period in the matters of search and seizure and the later deals with post assessment period as per the order in appeal.
The view of the department is not right on the plain reading of Section 132B(4) (b) of the Act as indicated above. We, accordingly, allow the appeal and set-aside the impugned order and hold that the appellant is entitled to the simple interest at the rate of fifteen percent per annum under Section 132B(4) (b) of the Act from 1.12.1990 to 4.3.1994.
REPORT ABLE
SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 10601 OF 2013 [ARISING OUT OF S.L.P. (C) NO. 20381 OF 2012]
CHIRONJILAL SHARMA HUF
Versus
UNION OF INDIA AND OTHERS
J U D G M E N T
