2004 (2) TMI 51 - HC - Income Tax

Department ordered to pay costs due to failure to refund interest under section 220(2)

The petitioner was awarded costs of Rs. 2,500 due to the Department's failure to refund interest under section 220(2). The responsible official was ... Refund - petitioner points opt that the petitioner has received a refund voucher from the Department on account as principal and interest under section 244(1A). He claims that some interest under section 220(2) was also paid which has not been refunded. – Held that dealy in refund was not justified - Before parting we record our anguish at the way that the Department is functioning. It is unfortunate that an assessee, who is entitled to refund has to approach the High Court. His grievance has not been redressed even by the so-called grievance cell which has been created by the Departmental authorities to help the assessees. - We are of the view that the assessee-petitioner deserves to be compensated at least qua the costs The petitioner received a refund voucher from the Department, but some interest under section 220(2) was not refunded. The Department was criticized for its functioning, and the petitioner was awarded costs of Rs. 2,500 to be borne by the responsible official. The Commissioner of Income-tax, Jalandhar-II, was directed to conduct an inquiry and fix responsibility within one month.