S.gaffar Khan v. The Commissioner, Commissioner Of Income Tax, Income Tax Department, "Aayakar Bhavan" Nungambakkam High Road, Chennai - 600 034

IN THE HIGH COURT OF JUDICATURE AT MADRASDated : 29.08.2016 Coram The Hon'ble Mr.Justice T.S.SivagnanamWrit Petition No.25844 of 2016 S.Gaffar KhanS/o. late A.Sattar KhanProprietor of M/s.Kareem Bedi Factory,Sam's Court, Phase II, No.50/88, P.A. Koil Street,Arumbakkam, Chennai - 600 106. ...PetitionerVs. 1.The Commissioner,Commissioner of Income Tax,Income Tax Department,"Aayakar Bhavan"Nungambakkam High Road,Chennai - 600 034. 2.The Assistant Commissioner of Income Tax,Non Corporate Circle - 6,Chennai. ...Respondents Writ Petition filed under Article 226 of the Constitution ofIndia, for issuance of Writ of Mandamus, in view of the letterissuedbytherespondentvidereferenceletterNo.C.No.127/refunds/PCIT-9/2015-2016, dated 12.10.2015 and todirect the respondents to grant payment of the refunds orderpassed by the Income Tax Settlement Commission, dated30.07.1999, with interest. For Petitioner : Mr.S.Sundar For Respondents : M/s.Hema MuralikrishnanO R D E RHeard Mr.S.Sundar, learned counsel appearing for thepetitioner, and M/s.Hema Muralikrishnan, learned counsel,accepting notice for respondents. With the consent on eitherside, the Writ Petition is taken up for final disposal. https://hcservices.ecourts.gov.in/hcservices/ 2.The petitioner has sought for issuance of a writ ofmandamus to direct the respondents to effect refund, pursuant tothe order passed by the Income Tax Settlement Commission,Chennai, dated 30.07.1999. 3.The petitioner case is that, he is the son of A.SattarKhan, the Proprietor of M/s.Kareem Bedi Factory, and after hisdemise, the petitioner claims to be looking after theadministration and financial aspects of the Factory. The CentralExcise Department initiated action against the Factory, for nonpayment of full excise duty, and from the suppression ofproduction and sales, revealed by the Central Excise Department,the Income Tax Department found that there were suppression ofincome. Assessment was made for the period from 1986-87 to1990-91. The petitioner filed an application before the IncomeTax Settlement Commission, Additional Bench, Chennai, whichpassed the order, dated 30.07.1999, whereby, a direction wasissued to refund Rs.11,17,178/-, with interest under Section 244A of the Income Tax Act, 1961 to the petitioner. However, therespondents have not chosen to refund the amount till date,inspite of several representations and reminders. It appearsthat, as no action was initiated by the respondents, effectingrefund, the petitioner caused a legal notice to the firstrespondent, requesting him to look into the matter, and expeditethe refund along with interest, who in turn, addressed thesecond respondent, vide letter, dated 12.10.2015, to takeappropriate action, and report the action taken. Till date, thesecond respondent has not initiated any action, and the matterhas been allowed to remain in cold storage. This hasnecessitated the petitioner to approach this Court, by way ofthis Writ Petition. 4.The facts of this case will clearly show that the zeal,with which, the tax was collected, has not been shown to effectthe refund, in spite of the order passed by the SettlementCommission. It is seen from the order passed by the SettlementCommission that the Settlement Application was filed by thepetitioner's father, who is no more. If the order of theSettlement Commission has become final and valid, and there isno other impediment, then, obviously, the legal heirs of thepetitioner, who filed the application before the SettlementCommission, are entitled for refund in terms of the order of theCommission. If there are any other issue, by now, the secondrespondent should have sent a reply to the petitioner. However,keeping the matter in cold storage, cannot be appreciated. 5.In the light of the above, there will be a direction tothe second respondent to consider the petitioner's request, andafford an opportunity of personal hearing to the petitioner, and https://hcservices.ecourts.gov.in/hcservices/ take note of all the facts and pass appropriate orders on meritsand in accordance with law, within a period of three weeks fromthe date of receipt of a copy of this order. 6.The Writ Petition is disposed of accordingly. Nocosts. Sd/-Asst. Registrar./true copy/Sub Asst. Registrar.sdTo1.The Commissioner,Commissioner of Income Tax,Income Tax Department,"Aayakar Bhavan"Nungambakkam High Road,Chennai - 600 034.2.The Assistant Commissioner of Income Tax,Non Corporate Circle - 6,Chennai. +3 CC to. Mr. S. Sundar, Advocate, Sr.48998+1 CC to Mr. T. Ravikumar, Advocate Sr.48799Writ Petition No.25844 of 2016RJ (CO)MD : 14/09/2016