The Madras High Court dismissed the writ petition filed by the borrower seeking the income tax returns ( ITR ) of the lender. The high court advised the petitioner to approach Reserve Bank of India ( RBI ) to resolve the grievance or complaint with regard to the manner in which financing business was carried out.
The bench of Chief Justice Sanjay V. Gangapurwala and Justice D. Bharatha Chakravarthy stated that “The petitioner has no right to request for such returns, and, therefore, this petition is misconceived.”
The petitioner had borrowed from the third respondent, who operates in the lending business. Allegedly, the petitioner’s wife had mortgaged an immovable asset, and the petitioner claimed that the lender had not disclosed their income in their Income Tax Returns. Subsequently, after submitting a representation on 05.09.2023 regarding the lender’s conduct, the petitioner filed the present writ petition.
The Petitioner contended that the lender had indulged in unlawful practices. He further submitted that the Income Tax Department failed to respond to the representation.
Dr. B. Ramaswamy, senior standing counsel, pointed out that the petitioner has already instituted civil proceedings against the lender. He further submits that the petitioner does not have the right to seek the income tax returns of the lender.
The High Court observed that “The petitioner is a borrower from the third respondent. If the petitioner has any civil claims in relation thereto, the petitioner should approach the jurisdictional civil court. If, on the other hand, the petitioner has a grievance or complaint with regard to the manner in which financing business was carried out by the first respondent, the petitioner should approach the regulator, i.e. the Reserve Bank of India. Instead, the petitioner has approached this Court after submitting the representation seeking the income tax returns of the third respondent.”
Consequently, the writ petition was dismissed.
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