2003 (3) TMI 32 - HC - Income Tax

Court allows petitioner to challenge reward payment for providing information to tax authorities

The court disposed of the writ petition, noting that the petitioner may pursue further legal action if unsatisfied with the final reward payment for ... Reward for information - assessment of reward in stages (interim, part final, final) - administrative process for quantification and audit of reward - duty to expeditiously conclude administrative proceedings - liberty to challenge final administrative decisionReward for information - assessment of reward in stages (interim, part final, final) - administrative process for quantification and audit of reward - duty to expeditiously conclude administrative proceedings - Respondents directed to finalise the petitioner's claim for final reward and make payment within the period specified by the Court. - HELD THAT: - The Court recorded the scheme followed by the Income-tax Department for assessment of reward in three stages - interim, part final and final - and the internal steps of completing proformas, quantifying income eligible for reward, and audit-certification prior to approval. Noting that the petitioner supplied information in 1994 and that the respondents stated that completion of the remaining formalities would take about four to five months, the Court directed that the respondents finalise and pay the final reward to the petitioner expeditiously and, in any case, within five months from the date of the order. The Court also noted that the petitioner was not pressing any claim for ex-gratia payment and recorded that if the petitioner is dissatisfied with the final payment made, he would be at liberty to pursue available legal remedies.The respondents shall complete the prescribed administrative process and make the final reward payment to the petitioner within five months; petitioner may seek appropriate remedies if dissatisfied with the final payment.Final Conclusion: Writ petition disposed of with a direction to the respondents to finalise and pay the petitioner's final reward within five months; petitioner left free to challenge the payment if dissatisfied. The petitioner filed a writ petition seeking a reward for providing information to income-tax authorities leading to substantial tax recovery. The authorities are in the process of finalizing the reward payment, which may take 4/5 months. The petitioner can take further legal steps if not satisfied with the final payment. The court disposed of the writ petition with these observations.