Court Directs Immediate Action on ITAT Order Non-compliance and Seized Bank Locker
In a significant ruling, the Delhi High Court has mandated the Income Tax Department to act promptly on a long-pending tax dispute involving petitioner Devi Dayal Aggarwal. The Court, presided over by Justices Dinesh Mehta and Dr. Aditi Choudhary, addressed a grievance dating back to an Income Tax Appellate Tribunal (ITAT) order from October 6, 2004, which had not been implemented by the Assessing Officer (AO).
The petitioner, Devi Dayal Aggarwal, contended that despite the Tribunal's ruling, the AO failed to pass an order reflecting the decision, leaving Aggarwal without clarity on his tax liabilities or potential refunds. Moreover, a staggering period of over 30 years has elapsed with Aggarwal's bank locker remaining seized, despite the tax dispute being resolved by the ITAT.
The Court expressed concern over the prolonged seizure of the locker, highlighting that such an action serves no purpose, especially when there is no outstanding demand. The judges deemed the situation troubling, as the locker might contain valuables, documents, or jewelry.
In response, the Court issued clear directives for the AO. Aggarwal is to receive a personal hearing on October 5, 2026, where he can present relevant documents and an affidavit. The AO is instructed to act based on these submissions and issue an order implementing the Tribunal's decision within three days, without requiring original records or certified copies from Aggarwal.
Additionally, the Court ordered an interim arrangement for the seized locker. The AO is to coordinate with the bank to open the locker in the presence of Aggarwal and the Bank Manager. The process will be videographed, with costs borne by Aggarwal, and the Bank Manager will issue a certificate regarding the status of the locker. While contents will be itemized, Aggarwal is not permitted to remove any items. The locker will be re-sealed post-verification, with the keys returned to Aggarwal, pending further court orders.
This decision underscores the High Court's commitment to ensuring due process and addressing administrative delays within the tax system. The case is scheduled for a follow-up hearing on October 12, 2026.
Bottom Line :
Income Tax - Despite ITAT order having attained finality, Assessing Officer failed for years to pass consequential order and continued seizure of petitioner's bank locker for over 30 years - High Court directed personal hearing, passing of order giving effect to Tribunal's order within 3 days, and supervised opening and inventory of locker with videography.
Statutory provision(s): Income Tax Act, 1961
Devi Dayal Aggarwal v. CIT Central II,New Delhi, (Delhi)(DB) : Law Finder Doc id # 2989416
