Documents Requested for Refund Claim Dates Back Three Decades: Calcutta HC directs PCCIT to Appoint Authority for Re-evaluation of Merits [Read Order]

In the present case, the Calcutta High Court directed the Principal Chief Commissioner of Income Tax, West Bengal & Sikkim (PCCIT) to appoint a competent authority to come up with a proper solution after conducting relevant enquiry, as documents requested by Revenue go back three decades.

The case is centered around a refund claim which has been denied for improper maintenance of records. However, the documents asked for by the Revenue on 19.02.2024 date back two to three decades and a claimant cannot be denied refund if he is entitled to it. The petitioner is entitled to appeal an order passed by the Commissioner under Section 263 of the Income Tax Act, 1961.

Both the petitioner and the Revenue department could not produce the required documents. The tribunal notes that responsibility lies with the Department to make available the said documents, as the petitioner is entitled to present its case in accordance with the law and a rejection of refund claim is not deemed proper.

The High Court was of the view that the matter is to be remitted back to the PCCIT who shall nominate/appoint a competent officer of the rank of Commissioner of Income Tax or above for the determination of refund claim. The officer was to devise an appropriate mechanism to conduct enquiry and reach a solution. Within a week of such appointment, the officer shall call upon the petitioner to present its case.

Within four weeks of appointment, PCCIT must pass an order which looks into the merits of the claim. The single bench of Justice Om Narayan Rai, hence, disposed of the appeal with directions and observations.

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