The court directed the competent authority to decide a pending representation for monetary reward under CBDT guidelines within a specified timeframe through a reasoned and speaking order.

Order on Board

1. By way of this petition, the petitioner has prayed for following reliefs:-

“10.1 That, this Hon'ble Court may kindly be pleased to issue an appropriate writ/order/direction against the impugned action of the respondent authority in arbitrarily omitting the petitioners claim and in not granting the benefit of the circular issued by the CBDT dated 30.05.2007.

10.2 That, this Hon'ble Court may kindly be pleased to call for the entire record pertaining to the petitioner's claim for reward under CBDT circular No. F. No. 287/79/2005-IT (INV.II) dated 30.05.2007.

10.3 That, declare the inaction of the respondents in not considering/ granting the benefit of the aforesaid circular to the petitioner as illegal, arbitrary and unsustainable in law and direct the respondents to consider the petitioners entire work/performance, including all omitted eligible cases referred to in the present petition for grant of monetary reward under the CBDT circular dated 30.05.2007, within a time-bound period.

10.4 Further direct the respondents, particularly the competent authority including the Member (Investigation), CBDT, to take a reasoned decision on the petitioner's entitlement and quantum of reward, by considering the total demand created/collected through the petitioner's efforts and by exercising residual powers, if necessary, in accordance with para 7.1 of the CBDT guidelines.

10.5 Direct the respondents to release and pay to the petitioner the monetary reward found payable together with interest at such rate as this Hon'ble Court deems fit from the date the amount became due till actual realization.”

2. Brief facts of the case, is that, the present writ petition has been filed challenging the prolonged, arbitrary, and wholly unexplained inaction on the part of the respondent authorities in not taking a final decision on the petitioner’s claim for grant of monetary reward under the applicable CBDT Guidelines relating to rewards for officers and staff of the Income Tax Department, despite the petitioner having rendered exceptional and meritorious service in the field of detection of TDS defaults, intelligence gathering, creation of substantial tax demands, and actual recovery of revenue resulting in significant financial benefit to the Income Tax Department; it is submitted that while serving as an Income Tax Officer, the petitioner detected major cases involving non-deduction of tax at source, including matters pertaining to Narmada Development Authorities, M/s Idea Cellular Ltd., and M/s Bharti Airtel Ltd., and accordingly passed orders under Sections 201 and 201(1A) of the Income-tax Act, 1961, on account whereof substantial tax demands were raised and considerable revenue was ultimately recovered and realized by the department; it is further submitted that in recognition of the petitioner’s outstanding contribution and performance, the Commissioner of Income Tax (TDS), Bhopal recommended the petitioner’s case for grant of maximum monetary reward in terms of the CBDT Circular/Guidelines dated 30.05.2007, however, despite such recommendation and despite the matter having remained under consideration for a considerable period of time, the respondent authorities failed to take the matter to its logical conclusion and no final reasoned order has been passed till date on the petitioner’s legitimate claim; it is also submitted that when the petitioner sought information under the Right to Information Act, 2005 through communications dated 03.09.2020 and 04.09.2020 regarding the status of his reward claim, the office of the Principal Commissioner, Bhopal, vide reply dated 30.09.2020, informed the petitioner that as pe