Shally Thapar Vs ACIT (Delhi High Court)
Delhi High Court Pulls Up Income-tax Department for 13-Year Delay in Returning Seized Cash and Jewellery
The Delhi High Court expressed strong displeasure over the Income-tax Department’s failure to return seized cash & jewellery even after 13 years. The petitioner contended that cash of ₹32.50 lakh & jewellery valued at ₹23.16 lakh, seized during a search in September 2010, continued to remain with the Department despite there being no outstanding tax demand. After adjusting the tax demand for AY 2011-12 in the assessment order, ₹9.96 lakh remained refundable, yet the Department neither returned the balance cash nor the jewellery despite the petitioner furnishing the required indemnity bond in 2018.
The Court noted the Department’s untenable stand that the assessee should first pay the outstanding demand with 12% interest, following which the seized amount would be refunded with only 6% interest. The Bench observed that the real grievance of the petitioner was not merely the money but the sentimental value attached to the seized jewellery, which had caused prolonged mental distress to the petitioner and his family.
Finding no satisfactory explanation from the Revenue except that some rectification remained pending, the Court condemned the Department’s conduct as reflecting “high-handedness and red-tapism.” It observed that while taxpayers are expected to act honestly, tax authorities are equally expected to discharge their statutory duties promptly. The Court directed the concerned Assessing Officer to remain personally present on the next date of hearing to explain why the matter had remained unresolved for over 13 years.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. The present case portrays shocking state of affairs, wherein an amount of Rs.32,50,000/- in cash and jewellery worth Rs.23,16,146/- which were seized on 17.09.2010 are still lying seized/retained by the Department.
