- (1.) This writ petition has been preferred for getting refund of an amount of Rs. 1,64,705/- (Rupees one lakh sixty four thousand seven hundred five only) from the respondent - Income Tax Department, but, as the said amount has not yet been paid, it is prayed by the learned counsel for the petitioner that the said amount may be refunded with interest as per Section 132B of the Income Tax Act as well as Section 244A of the Income Tax Act along with certain amount of compensation as per the decision rendered by the Hon'ble Supreme Court reported in (2006) 2 SCC 508.
(2.) The relief prayed for in this writ petition is as under:- "That in the instant writ application the petitioner prays for issuance of an appropriate writ(s), order(s) direction(s) from this Hon'ble Court for the following reliefs:- (a) For a direction upon the Respondent No.5 to refund out of the seized amount of Rs. 1,84,762/-, seized on 21.02.1991 (Annexure-1) and retained vide order under Section 132(5) dated 20.06.1991 (Annexure-2), after adjustment of tax payable by the petitioner for the Assessment year 1990-91 amounting to Rs. 20,257/- on the finally assessed income i.e. to refund a sum of Rs. 1,64,705/- to the petitioner out of the seized amount, which the Respondent IT department was duty bound to refund suomotto, without the petitioner having made any claim for the same. (b) For a further direction upon the Respondent No.5 to allow interest under the provisions of Section 132B(4) of the Income Tax Act, 1961 on the seized amount refundable, from the date immediately following the expiry of the period of six months from the date of the order under sub-section (5) of Section 132 (i.e. six months from 20.06.1991, that is from dated 20.12.1991 to the date of last of such assessments or reassessments, that is up to Date 04.10.2004, the date of order of Commissioner of Income Tax (Appeals) (Annexure-4) @15% from 20.12.1991 to 31.05.2002, @ 8% from 01.06.2002 to 07.09.2003 and @ 6% from 08.09.2003 to 04.10.2004 as per provision of the IT Act, amounting to Rs. 2,87,295/- (c) For a further direction upon the Respondent No.5 for payment of further interest under Section 244A on the amount refundable, after the order of CIT(A) dated 04.10.2004, amounting to Rs. 4,50,057/- (being tax refund of Rs. 1,64,705/- + interest u/s 132B(4) amounting to Rs. 2,85,532/-) from 4.10.2004 to the date of issue of refund, at the rates as per provisions of section 244A of the IT Act, 1961 as has been held by Hon'ble Apex Court in the case Commissioner of Income Tax v. H.E.G. Ltd.,2010 324 ITR 331(SC). (d) For a further direction upon the respondent No.5 for payment of compensation and Cost to the Petitioner, a Senior Citizen who is 74 years of age at present and was praying for the refund for his treatment and at present almost unable to move (Admitted by the Respondent No.5 in Annexure -10/1), for sitting tight over the repeated applications and persuasions for refund, mis-guiding the Petitioner and harassment caused to the Petitioner, during last more than 9 years, on the amount refundable to the Petitioner from 4.10.2014 when the refund became due, on the aforesaid amount Rs. 4,50,057/- refundable on 4.10.2004 to the date of grant of the refund to the Petitioner, @9% per annum and to issue the refund within one month, failing which the Department shall pay the penal interest/compensation @15% p.a. for the aforesaid period, as has been held by Hon'ble Apex Court (Division Bench) in the case of Sandvik Asia Ltd. v. Commissioner of Income Tax, 1, Pune, 2006 2 SCC 508 and explained and approved by Hon'ble 3 Judges Bench of Hon'ble Apex Court in recent case of Commissioner of Income Tax, Gujarat v. Gujarat Fluro Chemicals, 2013 358 ITR 291 (SC)decided on 18.09.2013.
(3.) Learned counsel for the petitioner has submitted that initially this petitioner for purchasing coal deposited an amount of Rs. 25,86,947/- ( Rupees Twenty five lakhs eighty six thousand nine hundred forty seven only) and the coal was already supplied by the respondent - Central Coalfields Ltd. worth Rs. 24,02,185/- (Rupees twenty four lakhs two thousand one hundred eighty five only) and the sum of Rs. 1,84,762/- (one lakh eighty four thousand seven hundred sixty two only) was retained by the Central Coalfields Ltd., and before the coal of remaining amount is supplied, search and seizure operation was carried out by the Income Tax Department and the demand draft given by this petitioner to the respondent-Central Coalfields Ltd. was encashed by the Income Tax Department through Central Coalfields Ltd. and disclosed income was added and ultimately the said addition was deleted and finally liability was imposed upon this petitioner to the extent of Rs. 20,057/- (twenty thousand fifty seven only). Thus out of Rs. 1,84,762/- (Rupees one lakh eighty four thousand seven hundred sixty two) only an amount of Rs. 20,057/- (twenty thousand fifty seven) should have been retained by the Income Tax Department and the remaining amount of Rs. 1,64,705/- (Rupees one lakh sixty four thousand seven hundred five only) ought to have been refunded by the Income Tax Department, but, as the said amount has not been refunded, this petitioner had to move from pillar to post, as stated in this writ petition and, therefore, this amount may be ordered to be refunded with interest under Section 132(B) as well as under Section 244A of the Income Tax Act with compensation as per decision rendered by the Hon'ble Supreme Court in the case of Sandvik Asia Ltd. v. Commissioner of Income Tax, 1, Pune, 2006 2 SCC 508.;