Gopal Dhanjibhai Bhimani Vs Income tax Department & Ors. (Gujarat High Court)
The Gujarat High Court considered a writ petition seeking grant of a final reward under the Guidelines for Grant of Rewards to Informants, 2007 after the petitioner had provided information alleging tax evasion. The petitioner claimed that he furnished vital information to the Income Tax Department, pursuant to which he was asked to submit the prescribed statement under the 2007 Guidelines and was granted an interim reward of ₹1,00,000. However, no final reward was sanctioned thereafter, leading the petitioner to approach the Court.
The petitioner relied on the Supreme Court decision in Ketan Kantilal Modi v. Union of India, contending that the competent committee under the reward policy was required to take a reasoned decision after hearing him, especially since no final order had been passed. It was argued that given the scale of alleged tax evasion disclosed, denial of any further reward without a speaking decision was unjustified.
The Income Tax Department opposed the petition, submitting that reassessment proceedings did not result in any addition on account of the alleged evasion and, therefore, the petitioner was not entitled to any reward beyond the interim amount already paid. According to the department, the interim reward of ₹1,00,000 fully satisfied the policy requirements in the absence of confirmed escapement of income.
