2006 (5) TMI 65 - HC - Income Tax

Tax Recovery - petitioners have prayed for a direction to the respondents including the CIT and the Tax Recovery Officer to render accounts in regard to the rent collected by them from the petitioners tenant and to refund the amount so recovered together with the amount of compensation received from the Special Land Acquisition Officer - details given by the petitioners are sketchy and do not present a complete picture and in any case, do not show that any actual recoveries were made - it is a matter that needs to be examined by the Commissioner of Income-tax after reconstructing the relevant record. If the Income-tax Department s record is not available for any reason, it cannot throw-up its hands. It shall have to reconstruct the same and deal with the claim made by the petitioners in the manner known to law.

Summary

Issues:
Petition for a writ of mandamus seeking direction for rendering accounts and refund of amounts collected by respondents. Allegations of illegal attachment of properties and unjustified recovery of compensation. Failure to file counter affidavit by respondents. Reconstruction of relevant record requested by respondents. Denial of recovery and refund claims by Commissioner. Dispute over recoveries made by Income-tax Department without outstanding dues justification.

Analysis:
The petitioners sought a writ of mandamus for the respondents to account for and refund amounts collected from them, alleging illegal attachment of properties and unjustified recovery of compensation. Despite the lapse of 16 years, the respondents failed to file a counter affidavit, prompting the court to grant more time for reconstruction of the record. The Commissioner of Income-tax filed an affidavit denying any recovery from the petitioners and their entitlement to a refund. The petitioners, in a rejoinder, reiterated their claims of attachment and unjustified recovery. The court noted the difficulty in verifying the claims and directed the Commissioner to treat the petitions as refund applications and reconstruct the record for proper redress within six months. The petitioners were required to provide necessary documents, and the Commissioner could summon relevant information. A final order granting or rejecting the refund claim, along with any payable interest, was to be communicated to the petitioners. They were allowed to seek redress against the Commissioner's order if needed. No costs were awarded, and the order was to be provided to the parties promptly.