Refund-related interest claim requires proof and departmental review; admissible refund to be examined on merits, with delay inquiry and costs.

A taxpayer's claim for unpaid refund-related interest required departmental examination on the basis of supporting evidence, because the particulars of payment were not furnished. The petitioner was granted liberty to submit a representation with proof, and the Department was directed to consider the claim on merits and issue any admissible refund within one month. The Court also directed an inquiry into the delay and responsibility for the grievance, and imposed costs.

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Issues: Whether the petitioner's claim for refund-related interest required departmental examination on the basis of supporting evidence, and whether costs could be imposed for the delay in redressing the grievance.

Analysis: The petitioner stated that refund had been received towards principal and interest under section 244(1A) of the Income-tax Act, 1961, but that interest under section 220(2) had not been refunded. As particulars of such payment were not furnished, the petitioner was given liberty to make a representation to the Department with supporting evidence, whereupon the claim was to be examined on merits and any admissible refund issued within one month. The Court also expressed concern over the Department's handling of the matter and directed an inquiry to fix responsibility for the delay.

Outcome: The writ petition was disposed of with a direction to the Department to consider the petitioner's claim on merits upon receipt of evidence, and costs of Rs. 2,500 were imposed with responsibility to be fixed through departmental inquiry.

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