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2015 (6) TMI 97 - PUNJAB & HARYANA HIGH COURT

2015 (6) TMI 97 - PUNJAB & HARYANA HIGH COURT - TMI - Release of reward money of the petitioner - petitioner, who is an alleged informer of the search proceedings in the matter of Jai Singh Thakur & Sons, Poanta Sahib, District Sirmour, Himachal Pradesh - Held that:- It is a fit case whereby the petitioner is entitled for the said relief, as per Clause 13.1 of the guidelines titled as 'Guidance for Grant Of Rewards To Informants, 1993' issued by the Government of India, Ministry of Finance, Depa .....

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annot be permitted to take a summersault and now, submit that on the basis of lack of specific information, the petitioner was not entitled for the reward money, as has been laid down in the guidelines, as noticed above. The purpose of the guidelines cannot be frustrated by taking such a narrow view. Rather, apart from the sum of ₹ 5 lacs which the petitioner is entitled to after adjusting the sum of ₹ 80,000/- already received, this Court is of the opinion that keeping in view the b .....

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within a period of 2 months from today. Regarding the balance claim of 10%, as per the proviso, the case will be forwarded to the competent authority and decision would be taken on the said case, within a period of 3 months, thereafter and the same be communicated to the petitioner. - CWP No. 14174 of 2014 (O&M) - Dated:- 13-5-2015 - S. J. Vazifdar, Acting Chief Justice And G. S. Sandhawalia,JJ. For the Appellant : Mrs Savita Bhandari, Adv. For the Respondent : Mr Rajesh Sethi, Adv. JUDGMENT G .....

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e case of the petitioner is that he is a resident of District Shimla, Himachal Pradesh and had furnished information with regard to tax default/undisclosed income assets of a firm named M/s Jai Singh Thakur & Sons (hereinafter referred to as the 'assessee'). The said assessee had been manufacturing marble chips for the past 25 years and pursuant to the information received, raids were conducted and the petitioner was given interim reward of ₹ 80,000/- on 25.04.2005. In order to .....

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inal settlement of ₹ 2.25 crores had been arrived between the Department and the said assessee. Representations had been made and reminders had been issued in September, 2012, May, 2013 and October, 2013 but to no avail and eventually, the present writ petition was filed. Accordingly, it was pleaded that the petitioner had put his life into risk and as per the guidelines, he was liable to get the balance amount and the same could not be withheld. 4. In the reply filed on behalf of responde .....

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tion merely pertained to under-filing of sales and undisclosed property of the firm of the assessee and the Department had the knowledge as a search was conducted in the case of M/s Thakur Sohan Singh on 03.05.2001. It was admitted that the interim reward of ₹ 80,000/- had been given and that a sum of ₹ 2,35,000/- had been given to the petitioner in the case of M/s Thakur Sohan Singh on 20.05.2004. It was submitted that the Deputy Director of Income Tax (Inv.) Shimla had submitted hi .....

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0% of the amount, subject to the ceiling of ₹ 5 lacs, which was also liable to be waived, in suitable cases, after obtaining the approval of the Full Board. 6. Counsel for respondents No.2 to 4, on the other hand, submitted that as per the defence taken, the petitioner, being informer, was not entitled for any reward as search and seizure was carried out after making discreet enquiry by the Inspectors of the Department. 7. After hearing counsel for the parties, we are of the opinion that i .....

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g of ₹ 5 lacs has been fixed with the proviso that the same would go upto 10% of the extra tax actually realised, which was liable to be waived in suitable cases, after getting approval of the Full Board. Clause 13.1 of the guidelines reads as under: "Amount of Reward The Authority Competent to grant reward may grant reward not exceeding 10% (Ten percent) of the extra income-tax, wealth-tax, gift-tax and estate duty levied and actually realised, but subject to a ceiling of ₹ 5,0 .....

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the assessments becoming final, the authority competent to grant reward may consider disbursement of reward in installment. Explanation: The monetary ceiling of ₹ 5,00,000/- (Rupees five lakhs only) referred to in para 13.1 shall apply with reference to a group of cases and not in respect of the individual assessees of the group." 8. In the present case, it is not disputed that the assessee was conducting mining operations in a remote area in Himachal Pradesh. The search and seizure .....

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ressed by the said Officer that Kamroh was one of the richest villages of India, in view of the mining activities but the collection of tax was almost nil before the search was conducted and not even ₹ 10,000/- was being collected as income tax. The said area was never on the radar of the Department because of the remoteness of the area and no other official had visited that area before the search took place. However, a caveat was added that the information given was not specific regarding .....

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been given effect to by the Assessing Officer and the taxes due had also been collected on the said income. This would be clear from the perusal of the communication dated 31.01.2014 (Annexure R2). The relevant part reads as under: "2.2. M/s Jai Singh Thakur & Sons, a partnership firm and its partners Sh. S.S.Thakur, Smt. Indu Thakur and SH. Mayank Thakur filed their applications before ITSC on 24.12.2002. The main issue before ITSC was inflation of extraction expenses, loading/unloadi .....

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0 2,00,000 2,00,000 2,00,000 Total: 0 1,40,00,000 2,25,00,000 2,25,00,000 The A.O. has since given effect to the order of ITSC and collected due taxes. 3. An interim reward amounting to ₹ 80,000/- was granted to Sh. Faisal Tanveer in this case on 24.04.2005 and now the informant is pleading for final reward in the case." 10. It is also not disputed that in the suit filed, the defence taken by the respondents, at that point of time, was that the income tax assets of the assessee had no .....

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