2011 (3) TMI 1335 - HC - Income Tax

Condonation of delay - delay in filing the returns due to delay caused in getting the required TDS certificates - Circular No.13/2006 dt.22.12.2006 - Held that - It is the CBDT which is the competent authority to look into these matters and to take an appropriate decision - Decided in favor of the assessee by way of remand

Summary

Issues:
1. Condonation of delay in filing Income Tax returns for assessment years 2002-03 and 2003-04.
2. Authority of the 1st respondent to condone the delay.
3. Rejection of condonation of delay for the assessment year 2002-03.
4. Applicability of Circular No.13/2006 issued by CBDT.
5. Judicial review of circulars issued by authorities.
6. Consideration of reasons for delay in filing returns.
7. Direction to approach CBDT for condonation of delay.
8. Disposal of return filed for the assessment year 2003-04.

Analysis:
The petitioner sought condonation of delay in filing Income Tax returns for the assessment years 2002-03 and 2003-04 due to delayed receipt of TDS certificates. The petitioner approached the 1st respondent under Section 119(2)(b) of the Income Tax Act for condonation. The petitioner claimed to have submitted the returns earlier but they were rejected by the 2nd respondent's office. The court directed the 1st respondent to consider the application for condonation.

The 1st respondent, in Ext.P7 order, stated that he could only condone delays up to six years from the end of the assessment year. The 1st respondent noted discrepancies in the acknowledgment of receipt for the returns. The petitioner contested the rejection of condonation for the assessment year 2002-03, while the delay for 2003-04 was later condoned. The court considered the limitations of the 1st respondent's powers as per Circular No.13/2006 issued by CBDT.

The court observed that the 1st respondent did not evaluate the reasons for the delay but rejected the application solely based on the time limit. The court noted the attempt made by the petitioner to submit the return earlier, despite the endorsements being scored off. It was decided that the matter should be referred to the CBDT for appropriate relief, considering all aspects.

The writ petition was disposed of, directing the petitioner to approach the CBDT for condonation of delay for the assessment year 2002-03. The CBDT was instructed to consider the petition within three months. The petitioner also requested the disposal of the return for the assessment year 2003-04, which was directed to be done promptly by the 2nd respondent.