NAGAVVA Vs. UNION OF INDIA

JUDGEMENT

(1.) HEARD Shri Subhash learned counsel appearing for petitioner and Shri Raviraj, learned standing counsel appearing for respondents 1 and 2.

(2.) PETITIONER is seeking for a direction to respondents to refund the tax deducted at source by the Court of Senior Civil Judge, Dharwad in Execution No.287/2003 which has forwarded a cheque dated 04.04.2006 for Rs.8,00,522/ - with interest on the ground that compensation awarded by the Reference Court is not liable to income tax being deducted at source.

(3.) HAVING heard the learned advocates appearing for parties and on perusal of records it would indicate that Civil Judge (Sr. Dn.), Dharwad had issued a cheque bearing No.140132 for Rs.8,00,522/ - in favour of Income Tax Officer, Income Tax Department, Navanagar, Hubli dated 04.04.2006 and had forwarded the said cheque on 17.04.2006. This Court had permitted the respondents to file an affidavit indicating as to whether said cheque have been despatched by the Jurisdictional Civil Court by way of TDS has been received by Income Tax Department and has been encashed by the Department or not. Pursuant to the same, an affidavit of Shri M F Timbare working as Income Tax Officer, Ward I (3) Hubli, Dharwad District came to be filed on 05.03.2014 stating thereunder, that despite best efforts made, respondents are unable to trace out payment of the amount having been received which was claimed to have been credited to the Central Government account during the relevant period. It is also stated in the affidavit that detailed verification of the available records was made by the department and return of income filed by assessee is not supported by Form No.16A which is mandatory for considering any claim for refund in proof of deduction of TDS and payment of amount into the account of Central Government and particulars of the deductee. It is also further stated in the said affidavit by Income Tax Officer that enquiries have been made by the department with State Bank of India, Dharwad as well as Hubli with whom Department is having Bank Accounts, as also Principal Senior Civil Judge and CJM, Dharwad to furnish necessary particulars of the amount of credit of the said TDS to the Account of Income Tax Department and such enquiry revealed that no such amount has been received. Department has also undertaken thereunder to refund the amount within two weeks if any proof by way of document is given either from the deductor, the treasury Office or Bank to the effect that amount has been credited to the account of Central Government. In view of this categorical stand taken by the Income Tax Department about said amount of Rs.8,00,522/ - having not been credited to the account of Central Government and the order sheet of the Executing Court indicating that cheque having been dispatched by the Registry of the Office of Senior Civil Judge and CJM, Dharwad and also certified copy of the postal acknowledgment having been furnished by the learned counsel for petitioner along with present petition, the moot question that arouse before this Court was as to what is the status of said cheque? Hence, to ascertain this factual matrix, a report was called from the Additional Senior Civil Judge, Dharwad which had dispatched the cheque to Income Tax Department. Learned Judge has forwarded a report on 13.03.2014 to the Registry of this Court and it has been specifically stated in the said report as under: