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2000 PTD 2978

BAGRI FOUNDATION vs CHIEF COMMISSIONER OF INCOME-TAX and others

Citation2000 PTD 2978
CourtDelhi High Court
Case No.C. W. No. 1849 of 1998
Date2000-09-15
Judge(s)R. C. Lahoti, C. K. Mahajan
ResultPetition disposed of

1. Rule D.B The petitioner filed this petition seeking a mandamus to the respondents to issue refund vouchers for the amount of tax which was liable to be refunded to the petitioner and for which there was no dispute. The petitioner also sought for a direction to the respondents to pay interest, which is statutorily liable to be paid by the respondents to the petitioner. During the pendency of this petition and after notice of the petition being served on the respondents, the requisite refund voucher has been issued and the main grievance, therefore, stands satisfied.

2. However, the petitioner has passed for the costs of the petition being allowed to the petitioner inasmuch as the respondents failed to carry out their statutory obligation and the petitioner was driven to the necessity of filing this petition.

3. We cannot resist observing that in various cases it comes to the notice of the Court that writ jurisdiction of this Court is required to be invoked solely because of the callousness on the part of the staff entrusted with the responsibility of dealing with files in which refunds are to be made.

4. Learned senior standing counsel for the respondents submitted that inasmuch as the tax has been refunded alongwith interest the costs may not be awarded. We are not impressed. Interest is now a statutory obligation under the Income-tax Act. It compensates the petitioner for delay in refund but does not compensate the petitioner for the expenses incurred in coming to the Court.

5. The petition be treated as disposed of as the principal grievance of the petitioner has been satisfied. However, the respondents are directed to pay costs quantified at Rs.5,000 to the petitioner. The respondents would be at liberty to fix the responsibility on the official who has been responsible for the delay and recover the costs from him, if so advised.

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