In a significant case, the Punjab and Haryana High Court has directed to take the departmental action against the income tax officials as the cheque for refund issued by income tax dept. bounced despite the court’s clear directions.
The court had disposed of application bearing regarding non-compliance of the Court’s orders when it found that the cheque for refund has already been issued to the petitioner-assessee. The court directed the Principal Chief Commissioner of Income Tax at Chandigarh to circulate and direct his subordinate Officers and Commissioners at various Divisions to comply with the directions, but the case had to be taken up again as the cheque issued by the respondent-Department was bounced.
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An affidavit has been filed by the Principal Commissioner of Income Tax, Rohtak stating that the amount has been deposited in the account of the petitioner-assessee and the delay was neither deliberate nor intentional, willful or malicious. The Principal Commissioner of Income Tax, tendered unconditional and unqualified apology for the delay and has ensured that such situation would not arise in future.
The Department relied on a circular dated 25.09.2024 issued by the office of the Principal Chief Commissioner of Income Tax, North Western Region for compliance with the orders passed by the Court and for issuing of warning to be careful and vigilant in complying with the Court’s order.
Ms. Jeotsnaa Johri, has assumed the charge of the Principal Commissioner of Income Tax, Rohtak on 17.09.2024 and on reviewing the case records she came to know about the order passed by the Court. In the affidavit, she further deposed that the bouncing of the cheque was an inadvertent mistake which happened on account of there being a confusion between the bank and the respondent-Department and the compliance has now been made immediately after order has been passed by the Court.
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The court observed and considered that the deponent-Ms. Jeotsnaa Johri has joined only on 17.09.2024 as the Principal Commissioner of Income Tax, Rohtak, proposed not to take any action against her personally, however, the court expected her to be careful and vigilant in future. Further remarked that once the Officer assumes charge of any office, he or she is required to have full information relating to the pending cases in the Court, orders passed by the Court and whether they have been complied with or not.
The division bench of Justice Sanjeev Prakash Sharma and Justice Sanjay Vashisth has observed that the concerned officers, who were holding the helms of affairs at that relevant time in the concerned offices, and their subordinates, have tried to mislead the Court. Thus called for the compliance report by the Principal Chief Commissioner of Income Tax, North Western Region with regard to action taken against the concerned officers, within a period of four weeks.
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