Bombay High Court appreciates CIT’s Efforts to Address injustice caused to Taxpayer [Read Judgment]

The Bombay High Court recently while disposing of a Writ Petition, took time to appreciate the timely intervention and efforts of the Principal Commissioner of Income Tax to resolve a problem faced by an octogenarian assessee-petitioner due to the mistake of his department.

The Petitioner challenged the orders passed by the Assessing Officer (A.O), rejecting the Petitioner’s application for rectification under Section 154 of the Income Tax Act, 1961. The Petitioner had by its application sought rectification of the intimation issued under Section 143(1) of the Act, for Assessment Year 1997-98.

In the affidavit filed by the Commissioner of Income Tax, he accepted the mistake on part of the department and stated that the Assessing Officer ought to have allowed the rectification application in respect of Assessment Year 1997-98. The Commissioner gave his assurance to the High Court that the issue would be resolved promptly and refund along with interest shall be granted to the Petitioner within the period of six weeks. He also recorded the regret on part of the Revenue for the inconvenience caused to the Petitioner-Assessee.

The Bench comprising Justice Sandeep K. Shinde & Justice M.S. Sanklecha couldn’t resist placing on record their satisfaction towards the Commissioner. The bench observed “Before parting, we would like to place on record our sincere appreciation for the proactive and sensitive manner in which the Commissioner of Income Tax – Mr. Sachchidanand Srivastava has intervened to ensure that injustice caused to the party is addressed. Moreover, very graciously he places on record his regrets for the inconvenience caused to the Petitioner for acts of his department. This, indeed, is a very commendable and fair gesture, which is rarely noticed on the part of the Revenue. All we can say if such conduct would become the norm, the department itself would gain as the fairness in dealing with an assessee would automatically result in greater compliance of the laws by the taxpayer. This secure in the belief the tax department would be fair and not treat the assessee as its enemy/adversary.”