VIJAY KUMAR BHATI Vs. COMMOSSIONER OF INCOME TAX

JUDGEMENT

(1.) This application is offshoot of judgment dated 21st May, 1993 passed by this Court in CWP No. 2292 of 1987. By aforesaid judgment, a writ petition filed by the petitioner was allowed with costs. What compelled the petitioner to file the aforesaid writ petition may be recapitulated first by stating those necessary facts which have bearing on the present CM.

(2.) Petitioner is a non-resident Indian. He had left and went to Riyadh in Saudi Arabia in February, 1982 on getting employment there. On 10th March, 1985 he visited India for 19 days. During his stay in India, he opened FCNR S.B.A/C No. 5810 for US $ 500/- with Indian Overseas Bank, Tolstoy Marg, New Delhi. On 17th July, 1985 from Saudi Arabia; he remitted a sum of US $ 35,000/- in A/c No. 9/85. Thereafter he remitted another sum of US $ 99,995/- by opening another A/c No. 10/85 on 10th August, 1985. On 10th September, 1985 Income Tax department wrote a letter to the Manager, Indian Overseas Bank directing the Branch Manager not to release the Said amount to be petitioner. This was followed by attachment orders dated 12th September, 1985 & 18th September, 1985 in respect of the aforesaid account. These attachment orders remained in force till 6th June, 1986 in respect of first account and 9th January, 1996 in respect of second account when the money was delivered out of these accounts to the department to the extent of Rs. 6,20,572.00(US $ 50,979.99) out of the second account and Rs. 9,96,532.00 (US $ 80,744) out of the first account as well as balance lying in the second account. Petitioner filed appeal, first to the Commissioner of Income Tax (Appeals)[hereinafter referred to as "CIT(A)]" and thereafter to the Income Tax Appellate Tribunal against the aforesaid orders of he Assessing Officer and as a result of appellate orders, he became entitled to some refund out of the tax realised from the bank from FCNR/SDR accounts mentioned aforesaid. However this refund was withheld by the department under the provisions of Section 241 of the Act. Aggrieved by such actions on the part of the respondents, petitioner filed CWP No. 2292 of 1987. This petitioner was allowed by judgment dated 21st May, 1993 and the Income Tax department was directed to refund the amount of US $ 35,000/- & US $ 99,995/- alongwith interest accrued thereon. It would be appropriate to reproduce the relevant directions given in this judgment as much reliance was placed by counsel for the petitioner on these directions:

(3.) The department filed Special Leave Petition against the said order in the Supreme Court which was dismissed. Department thereafter complied with the directions by depositing a sum of Rs. 32, 52, 673.00 (equivalent to US $ 1,03,272.37/-) in the bank as the principal amount and interest thereof. According to the department, the amounts were deposited including the interest, which had been calculated as per provisions of Section 244 of the Income Tax Act, thereby fully complying with the directions contained in the judgment. However, as the petitioner was dissatisfied with the computation made by the department, he filed CCP which was dismissed giving liberty to the petitioner to move CM in this writ or take other appropriate proeedings. This is how CM No.7829/95 has been filed.