2015 (10) TMI 1753 - HC - Income Tax

Claim of reward - petitioner s case that he had supplied information to the Income Tax Authorities regarding alleged tax evasion by All India Personality Enhancement and Cultural Society for Scholars (AIPECCS Society)/Col. Satsangi Kiran Memorial Group - Held that - The Assessee, AIPECCS Society had successfully challenged the assessment made under Section 158BC before the Income Tax Appellate Tribunal and the Tribunal had set aside the assessment made. The Revenue appealed against the aforesaid decision, in an appeal filed under Section 260A - By a judgment of this Court 2015 (10) TMI 600 - DELHI HIGH COURT upheld the Tribunal s order and rejected the Revenue s appeal. Since the assessment framed in respect of AIPECCS Society pursuant to the search conducted on 15th January, 1999 has been quashed, the petitioner would not be entitled for any reward in respect of the said assessment. Accordingly, the present petition is dismissed.

Summary

Issues:
Petitioner seeking release of balance reward amount for providing information on tax evasion by AIPECCS Society, challenge to assessment made under Section 158BC of the Income Tax Act, 1961, petitioner's entitlement to reward, dismissal of petition due to quashing of assessment.

Analysis:

1. The petitioner filed a petition seeking a writ for the release of the balance reward amount due to him for providing information on tax evasion by AIPECCS Society. The petitioner claimed that he was entitled to a reward as per the policy for the information provided by him, which led to a search under Section 132(1) of the Act at certain premises of AIPECCS Society. The petitioner had already received an interim award and a subsequent amount based on the Reward Committee's conclusion.

2. The petitioner's entitlement to the reward was linked to the assessment made under Section 158BC of the Income Tax Act, 1961. As the assessment was challenged by AIPECCS Society and subsequently quashed by the Income Tax Appellate Tribunal, the petitioner's claim for the reward in connection with that assessment was dismissed. The Tribunal's decision to set aside the assessment meant that the petitioner would not be entitled to any reward related to that assessment.

3. The High Court upheld the Tribunal's decision and rejected the Revenue's appeal, thereby affirming that the assessment made under Section 158BC of the Act was not valid. Consequently, since the assessment was quashed, the petitioner's claim for the balance reward amount was dismissed. The Court noted that due to the quashing of the assessment, the petitioner was not entitled to any reward in connection with that assessment.

4. The Court, in its judgment, emphasized that the petitioner's claim for the balance reward amount was directly linked to the assessment made under Section 158BC of the Income Tax Act, 1961. As the assessment was successfully challenged and set aside, the petitioner's claim for the reward was not sustainable. Therefore, the petition seeking release of the balance reward amount was dismissed, and the parties were directed to bear their own costs in the circumstances of the case.