Claiming refund of the excess advance tax beyond the period of limitation is a stale claim: High Court of Delhi.

S 21 W.P.(C) 6683 2021 IN THE HIGH COURT OF DELHI AT NEW DELHI HARBUX SINGH SIDHU Petitioner Through: Mr.Aakash Khattar with Mr.Gaurav Gupta Advocates. DEPARTMENT OF INCOME TAX Respondent Through: Ms.Vibhooti Malhotra Sr.Standing counsel for Income Tax. Mr.Virender Pratap Singh Charak with Ms.Shubhra Parashar Mr.Pushpender Singh Charak Advocates for UOI. Date of Decision: 19th July 2021 HON BLE MR. JUSTICE MANMOHAN HON BLE MR. JUSTICE NAVIN CHAWLA MANMOHAN J JUDGMENT The petition has been heard by way of video conferencing. Present writ petition has been filed seeking refund of the excess advance tax deposited by the Petitioner amounting to Rs. 6 50 000 along with interest at the rate of 12% from the date of deposit of original challan up to the date of realization of such amount. Petitioner also seeks a direction to the Respondents to adjudicate the claim of Petitioner in an expedited manner and pay an amount of Rs 5 Lakhs towards the cost of the present W.P.(C) 6683 2021 proceedings and mental harassment to the Petitioner. Learned Counsel for the Petitioner submits that Petitioner had deposited a sum of Rs. 6 50 000 towards advance tax for the Assessment Year 2000 01. He states that the Petitioner had misplaced the original challan for the same and informed the Department so that he could be issued the refund in future whenever the necessary document was provided. Learned Counsel for the Petitioner states that Petitioner found the original challan dated 31st January 2001 showing the payment of Advance Tax amounting to Rs. 6 50 000 made by the Petitioner and filed an application dated 14th July 2003 with the Income Tax Office requesting for rectification of the account and apprising them of the fact that the Petitioner had finally traced the original challan. He states that Petitioner got a certificate dated 10th October 2009 issued by Syndicate Bank Green Park Extension Branch duly certifying that the Petitioner made a payment of Rs.6 50 000 on 31st January 2001 vide cheque No. 040718 and submitted the same to the Respondents . Learned Counsel for the Petitioner states that the Respondent had vide th April 2016 requested the Bank officials to verify the its letter dated 19 transaction of the Petitioner by which it had made a payment of Rs. 6 50 000 towards payment of Advance Tax for FY 2000 01. He states that the Bank in its reply letter dated 13th May 2016 informed the Respondent that the record for the year 2001 had already been destroyed as per the bank Keeping in view the aforesaid facts this Court is of the view that the Petitioner in the year 2021 cannot seek refund of the excess advance tax deposited for the Assessment Year 2000 01 as it is a stale claim. It is W.P.(C) 6683 2021 settled law that representations made by the Petitioner would not extend the period of limitation. In any event the Bank vide letter dated 13th May 2016 had informed the Respondent that it has no record with regard to the excess payment made by the Petitioner for the Assessment Year 2000 01. No proceeding had been filed by the petitioner within three years from the said date. Consequently the present writ petition is dismissed on the ground of delay and laches. The order be uploaded on the website forthwith. Copy of the order be also forwarded to the learned counsel through e mail. MANMOHAN J NAVIN CHAWLA J JULY 19 2021 W.P.(C) 6683 2021 

Summary: In the year 2021, a person cannot seek a refund of the excess advance tax deposited for the Assessment Year 2000-01, as it is would be considered as a stale claim. A divisional Judge bench comprising Hon’ble Justice Manmohan and Hon’ble Justice Manmohan and Justice Navin Chawla, in the matter of Harbux Singh Sidhu Vs. Department of Income Tax (W.P.(C) 6683/2021), dealt with an issue where the petitioner filed a writ petition seeking a refund of the excess advance tax deposited by the Petitioner amounting to Rs. 6,50,000/, along with interest at the rate of 12% from the date of deposit of original challan up to the date of realization of such amount. In the present case, the counsel for the petitioner submitted that the petitioner had deposited a sum of Rs. 6,50,000/- towards advance-tax for the Assessment Year 2000-01. The petitioner had misplaced the original chalan and had also informed the same to the Department so that he could be issued the refund in the future. The counsel also informed that the petitioner found the original challan dated 31st January 2001 and thereby the Petitioner had filed an application dated 14th July 2003 with the Income Tax Office requesting for rectification of the account and apprising them of the fact that the Petitioner had finally found the original challan. Also, a certificate was issued by Syndicate bank duly certifying that the Petitioner made a payment of Rs.6,50,000/- on 31st January 2001 and submitted the same to the respondents. The counsel for the petitioner also pointed out that the respondent had requested the Bank officials to verify the transaction of the Petitioner by which it had made a payment of Rs. 6,50,000/- towards payment of Advance Tax for FY 2000-01. To which the bank had informed the respondent that the record for the year 2001 had already been destroyed as per the bank policy. The court observed that- “the Petitioner in the year 2021 cannot seek a refund of the excess advance tax deposited for the Assessment Year 2000-01, as it is a stale claim.” The court also stated that the representations made by the petitioner should not extend the period of limitation. Further, the court pointed that no proceeding was filed by the petitioner within 3 years from the said date. Thereby the court dismissed the writ petition on the ground of delay and laches. Click Here For The Judgement