Assistant Commissioner Of Income Tax, Amravati Circle, Amravati v. Shri Iqubal Abdul Sattar Ghaniwale

IN THE HIGH COURT OF JUDICATURE AT BOMBAY, NAGPUR BENCH, NAGPUR Misc. Civil Application No.24 of 2009 In Writ Petition No.4613 of 2007 1. Commissioner of Income Tax (III), Nagpur. 2. Director of Income Tax (Investigation),Nagpur.3. Assistant Director of Income Tax(Investigation-I),2[nd] Floor, Saraf Chambers,Mount Road,Sadar, Nagpur. 4. Assistant Commissioner of Income Tax,Amravati Circle,Amravati.Versus ... Applicants 1. Shri Iqubal Abdul Sattar Ghaniwale,Aged about 59 years,Occu. Agriculturist,R/o Daryapur,District Amravati. 2. Dr. Punjabrao Deshmukh UrbanCo-operative Bank Ltd,through its Manager,Branch at Daryapur,District Amravati. 3.Vedprakash Mishra,Assistt. Commissioner of Income Tax,Amravati Circle, Amravati. 4. Dr. Mahesh Akhade,Asstt. Director of Income Tax (Inv.),Nagpur. Now posted at AykarBhavan, Central Circle, Marine Drive,Mumbai.... Non-Applicants Shri A.S. Jaiswal, Advocate for Applicants.Shri J.T. Gilda, Advocate for Non-Applicant No.1.Ms Geeta R. Bamblani, Advocate, holding for Shri U.S. Dastane,Advocate, for Non-Applicant No.2. --------------------------------------------------------------------------------------------------------- CORAM : A.H. Joshi & R.C. Chavan, JJ. DATED : 3[rd] April, 2009 Oral Judgment (Per A.H. Joshi, J.) : 1.Rule. Heard finally by consent of parties. 2.According to the applicants, the direction issued by thisCourt awarding the interest at the rate of 12% per annum from14[th]February, 2007 is contrary to the Income Tax Act as theSection 132B, which provides the interest at the rate of 6% perannum from the date specified therein.Hence, this Misc. CivilApplication of review of the judgment dated 16-4-2008. 3.TheMisc.CivilApplicationisopposedbyfiling affidavit-in-reply. 4.The tenor of affidavit is that it does not dispute theproposition in law espoused in the Misc. Civil Application.Respondent No.1 urges that considering the high-handedness ofthe authorities, the higher rate of interest i.e. 12% per annum wasawarded by this Court. 5.After hearing the parties, it is clear as to what this Courthad in its mind while passing the order is to award “interest as perthe Act”. Said rate of interest essentially means that the interestcould be at the rate of 6% per annum as permissible under Section132B(4)(b) of the Income-Tax Act. 6.In view of the above, we allow the review application.We direct that the words “(i.e. 12% per annum) with effect from14[th]February, 2007 till the amount is realised by the petitioner”appearing at the end of first sub-para of para No.11 of order dated16-4-2008 be deleted. 4 7.Rule is made absolute in terms of para No.6. The order dated 16-4-2008 be corrected accordingly. Parties shall bear theirown costs. Lanjewar JUDGE JUDGE