Window dressing by I-T officers catches HC eye

Saurabh Malik
Tribune News Service
Chandigarh, April 7

Taking note of delay in tax refunds in more than a few cases, the Punjab and Haryana High Court has ruled that delaying tactics are being used, among other things, for window dressing of revenue collection. It causes harassment to the assessee and interest on delayed amount burdens the exchequer.

A Division Bench of the High Court, in one such case, also issued notice to Rohtak Principal Commissioner of Income Tax Krinwant Sahay and Gurugram Assistant Commissioner of Income Tax Dipin Goel.

The Bench of Justice Ajay Tewari and Justice Avneesh Jhingan stated that it deemed appropriate to further consider whether costs was required to be imposed on the officers in their personal capacity and consequently, notice was issued to the two authorities to show cause ‘why this should not be done’.

The directions came on a petition filed by Huawei Telecommunications (India) Company Private Limited against the Union of India and other respondents. The petitioner was seeking quashing of order dated November 8, 2019, passed under the provisions of the I-Tax Act, withholding refund for 2017-18 and 2018-19. Directions were sought to refund the amount due to the petitioner.

The Bench directed the respondents to issue refund for 2017-18 and 2018-19, along with statutory interest. and set a four-week deadline.

“It cannot be lost sight of the fact that trade and commerce is the life blood of the system. If the excess amount deposited as tax is not refunded to the entrepreneur or assessee, it has an effect on liquidity and business. There cannot be second opinion that revenue collection and securing interest of revenue is of great importance. At the same time, revenue is to be collected like an apiarist extracts honey from beehive without destroying it,” the Bench stated.