RAM SURAT RAM (MAURYA), J. - (1.) HEARD Sri Rakesh Kumar, counsel for the petitioner and Sri Govind Krishna. Senior Standing Counsel for the Revenue.
(2.) THIS writ petition has been filed for quashing the order dated 14.09.2010 passed by Income Tax Officer, Agra (respondent -4) by which, the application of the petitioner for payment of interest has been rejected and for a mandamus directing the respondents to rectify the order dated 23.04.2010 and allow the interest on the amount retained and refunded, u/s 244A of the Income Tax Act, 1961 (hereinafter referred to as the 'Act'). Gurvinder Singh (the petitioner), while traveling in the bus, was intercepted by police authorities at Transport Nagar, Jaipur on 13.08.1996. From his possession, cash of Rs. 4,68,000/ - and silver ornaments of 211 gms were seized. On receiving information from police, Additional Director of Income Tax (Investigation -IV), Jaipur (hereinafter referred to as 'ADIT'), contacted the police authorities and recorded statement of the petitioner u/s 131 of the Act on 14.08.1996. In his statement recorded by ADIT, the petitioner has stated that Rs. 3,68,000/ - and silver ornaments of 211 gms belonged to him while Rs. 1/ - lakh was taken by him on loan from one Maan Singh. Thereafter, the petitioner filed an application for releasing the aforementioned amount before the criminal court along with his affidavit and affidavits of other persons, in which, it has been stated that cash amounting to Rs. 3,35,000/ - were given to him by Dharampal Singh, Leeladhar, Banne Singh and Mahesh Kumar for bringing marbles from Makrana and Rs. 1/ - lakh was taken by him from Maan Singh as loan and remaining amount of Rs. 33,000/ - and silver ornament of 211 gms belonged to him.
(3.) THE ADIT requisitioned the cash amount of Rs. 4,68,000/ - and silver ornaments of 211 gms on 12.05.1998 from the police authorities. Thereafter, notice u/s 158 -BC was issued to the petitioner on 14.07.1998 (served on 03.08.1998), to show the income for the block period from 01.04.1988 to 12.05.1998 and file the return of income tax. In compliance of the aforesaid notice, the petitioner filed his return of the aforesaid block period. The Assessing Officer by order dated 09.05.2000 held that the subsequent statements of the petitioner given before the criminal court as well as in the assessment proceedings, were afterthought and the first statement recorded by ADIT was the correct statement. Accordingly, the undisclosed income of the petitioner for the block period was held to be Rs. 5,38,400/ - and on which, income tax of Rs. 3,23,040/ - has been assessed. On the basis of the aforesaid order, demand of Rs. 3,23,040/ - was raised against the petitioner. The petitioner moved an application dated 23.05.2000 before respondent 4 requesting to adjust the amount of income tax from his seized money. On the basis of the aforesaid application, the amount of Rs. 3,23,040/ - was adjusted as income tax and the remaining amount was refunded to the petitioner along with interest under Section 132B of the Act.;