CHIRONJILAL SHARMA HUF versus UNION OF INDIA AND ORS.

CHIRONJILAL SHARMA HUF versus UNION OF INDIA AND ORS.

The appellant is entitled to simple interest at 15% per annum under Section 132B(4)(b) for the pre-assessment period (1.12.1990 to 4.3.1994) on the amount appropriated pursuant to a search, as Section 132B(4)(b) governs such pre-assessment periods, not Section 240 or 244A.

Parties
Appellant: Chironjilal Sharma HUF; Respondents: Union of India and Others
Jurisdiction
India
Judgment Date
26 November 2013
Procedural Posture
Civil Appeal / Supreme Court Final Appeal Against High Court Judgment
Outcome
Appeal allowed
Legal Topics
Income Tax Act, 1961, Search and Seizure, Refund of Seized Assets, Interest on Delayed Assessment
Tax Law Income Tax Act, 1961 Search and Seizure Refund of Seized Assets Interest on Delayed Assessment

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Parties

Chironjilal Sharma HUF

Appellant

Union of India and Others

Respondents

Procedural Posture

Civil Appeal / Supreme Court Final Appeal Against High Court Judgment

Legal Issues

  1. 1 Whether the appellant is entitled to simple interest under Section 132B(4)(b) of the Income Tax Act, 1961 for the period between expiry of six months from the date of order under Section 132(5) and the date of regular assessment order on cash appropriated during search.

Ratio Decidendi

The appellant is entitled to simple interest at 15% per annum under Section 132B(4)(b) for the pre-assessment period (1.12.1990 to 4.3.1994) on the amount appropriated pursuant to a search, as Section 132B(4)(b) governs such pre-assessment periods, not Section 240 or 244A.

Court Disposition

Appeal allowed

Orders

  • Impugned order set aside
  • Appellant entitled to simple interest at 15% per annum under Section 132B(4)(b) from 1.12.1990 to 4.3.1994