Writ petition seeking refund claim dismissed for delay in filing: Cooperative Society case

The High Court dismissed the writ petition seeking a refund claim for the assessment year 2014-15 due to delay in approaching the court. The petitioner, a Cooperative Society, filed a defective Income Tax Return under Section 139 of the Act and failed to rectify the defects within a reasonable time. The court held that the claim was barred by delay and laches, emphasizing the need for timely submission. The petition was dismissed based on the general Law of Limitation, as the claim was not filed within the prescribed three-year period for recovery suits.

---

---

Issues:
Refund claim for assessment year 2014-15; Defective filing of Income Tax Return under Section 139 of the Act; Delay in approaching the court for refund claim.

Refund Claim for Assessment Year 2014-15:
The petitioner, a registered Cooperative Society, sought a refund of Rs. 40,147 for the assessment year 2014-15, claiming that the Income Tax Return filed on 12.09.2014 through PAN No.AAAAM7407N was exempt under Section 80P of the Income Tax Act, resulting in the refund of TDS amounting to Rs. 40,147. The claim for refund was not accepted initially, leading the petitioner to approach the authorities with requests dated 31.03.2016 and 21.10.2016. However, the authorities informed the petitioner on 07.08.2018 that the Income Tax Return filed was treated defective under Section 139 of the Act.

Defective Filing of Income Tax Return under Section 139 of the Act:
The petitioner's return was considered defective under Section 139(9) as it was required to be filed online, which the petitioner failed to do. Despite being advised to rectify the defects and file the return online or apply for condonation of delay, the petitioner did not comply. The Central Board of Direct Taxes closed the complaint made by the petitioner, stating that the refund claim could not be processed due to the failure to rectify the defects in the return.

Delay in Approaching the Court for Refund Claim:
The petitioner approached the High Court with a writ petition more than three years after the complaint to the Central Board of Direct Taxes was closed on 13.08.2018. The court noted that the claim for refund was barred by delay and laches, emphasizing that the petitioner should have made the claim within a reasonable time after 17.07.2018. Citing the general Law of Limitation, which prescribes a three-year period for filing suits for recovery, the court found the petitioner's claim to be untimely. Referring to the principle approved by the Hon'ble Supreme Court in a previous case, the court dismissed the writ petition due to being barred by delay.

---