The Calcutta High Court ruled that the Income Tax Department had prolonged the matter and failed to incorporate the revised Central Public Works Department (CPWD) rates as the quantum of rent for the building.
The bench of Chief Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya dismissed the appeal filed by the department, noting that partial relief had been granted to the building owners through an interim order. The court found no disputed question of fact regarding the CPWD rates.
The appeal was filed by the Principal Commissioner of Income Tax, Asansol, challenging the order of the Single Bench. The Single Bench had directed the appellant department to pay the writ petitioners arrears of rent totaling Rs. 2,84,39,242/-, based on CPWD revisions, by May 31, 2023, failing which interest at 16% per annum would apply.
The Income Tax Department was also given the liberty to file a civil suit regarding alleged municipal tax arrears and repair charges. The court stated that the writ petition was maintainable and rightly entertained by the Single Bench, given the factual position and absence of any disputed issues.
The department argued that the Single Bench had essentially issued a money decree and adjudicated disputed facts, which was not permissible since the matter was a contractual dispute between the building owner and the department.
However, the respondent contended that there were no factual disputes on record, and the department had willfully failed to pay rents as per CPWD norms. The Single Bench had rightly considered these facts in issuing the directions.
The court observed that the writ petitioners had been unfairly treated over the years, and the department should have handled the matter more responsibly. It found that there were no disputed issues requiring adjudication, and therefore upheld the Single Bench’s decision.
