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Issues:
1. Extension of time under section 80HHC(2)(a) of the Income-tax Act, 1961. Analysis: The judgment delivered by MANMOHAN SARIN J. pertains to a writ petition filed seeking to set aside an order rejecting an application for extension of time under section 80HHC(2)(a) of the Income-tax Act, 1961. The petitioner, an exporter of ready-made garments, had exported goods to a company in London, with a portion of the payment outstanding. The Commissioner of Income-tax had initially granted an extension of time until June 30, 1997, for the realization of the outstanding amount. However, the full payment was only received by the petitioner on December 2, 1997. Subsequently, a further application for extension of time was filed on March 26, 1998, which was rejected by the Commissioner. The main contention revolved around the delay in filing the application for extension of time. The Commissioner emphasized that the petitioner had not applied for an extension for nearly nine months after the payment was received, and certain evidence, such as telephone bills, was disregarded. The respondent argued that there was no justification for the delay and that the court need not delve into the merits of the matter under its jurisdiction. However, it was acknowledged that the Commissioner had the authority to grant extensions retrospectively. Upon review of the evidence, including telephone bills and passport copies, it was revealed that the importer faced financial difficulties and the petitioner had made efforts to follow up on the payment, culminating in the full realization of the outstanding amount. The court found that the petitioner had presented sufficient cause for the extension of time and criticized the hypertechnical approach taken by the Commissioner. Consequently, the court set aside the order rejecting the application for extension and allowed the petitioner's request for an extension of time until December 2, 1997. In conclusion, the judgment highlights the importance of demonstrating sufficient cause for seeking an extension of time under the Income-tax Act and emphasizes the need for a balanced approach, considering the circumstances of the case rather than solely focusing on procedural delays.
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