2020 (2) TMI 656 - HC - Income Tax

Delay in filing return of income (ITR) - condonation of delay u/s 119 - Refund - the petitioner did submit his return keeping in view Section 139(4) electronically for AY 2015-16 on 2.12.2015 - the CPC, Banglore received duly signed acknowledgment, which was generated online at the time of filing of the return on 01.03.2017 - HELD THAT - The petitioner did mention about the illness of his wife, about hospitalization of his wife and in all fairness, the delay should have been condoned. It is not a case of evasion of income, it is not a case where no income tax return was filed, it is only a case, in which, Form No.V was not forwarded to the CPC, Banglore in the prescribed time. The return for assessment year 2015-16 was filed on 02.12.2015 and Form No.V was received by the CPC, Banglore on 01.03.2017. Reasonable cause was explained in the application submitted by the petitioner and the Principal Commissioner has brushed aside the factum of illness of the wife of the petitioner by stating that after discharge from the hospital, the assessee's wife has taken routine treatment and the assessee was not prevented from the filing the return up to March, 2017 under Section 139 (4) of the Income Tax Act, 1961. The present case is certainly a case of genuine hardship to the assessee and the discretion should have been exercised in favour of the assessee. The TDS, which the assessee was claiming, was in respect of tax deducted at source by the State of Madhya Pradesh, as the assessee was a Government Advocate, and therefore, the order dated 15.03.2019 is hereby quashed. The assessee's application dated 07.11.2017 for condonation of delay under Section 119 (2)(b) of the Income Tax Act, 1961 claiming refund of ₹ 43,590/- in respect of Assessment Year 2015 16 is allowed. The respondent is directed to process the case of the petitioner for refund, as claimed by the assessee, ignoring the delay. The exercise of processing the case and passing the final order ignoring the delay be concluded within a period of three months from the date of receipt of certified copy of this order.

Summary

Issues:
Delay in filing income tax return under Section 139(4) of the Income Tax Act, 1961 and condonation of delay under Section 119(2)(b) for Assessment Year 2015-16.

Analysis:

The petitioner, a practicing advocate, filed a writ petition aggrieved by the order of the Principal Commissioner, Income Tax, Indore, dated 15.03.2019, regarding the delay in filing the income tax return for the Assessment Year 2015-16. The petitioner contended that despite a delay of 86 days in filing the return, he was entitled to a refund of ?43,590 as per his income computation. The return was filed electronically within the statutory period under Section 139(4) of the Income Tax Act, 1961, but the acknowledgment was sent to the CPC, Banglore after a delay of 335 days due to his wife's critical illness.

The petitioner invoked Section 119(2)(b) of the Income Tax Act, 1961, seeking condonation of the delay caused in sending the acknowledgment to CPC, Banglore. The petitioner, aged 76 years, highlighted his wife's illness and the TDS deduction of ?43,586 from his salary income. He relied on a CBDT circular allowing condonation where the claim amount is less than ?10,00,000 for any Assessment Year. However, the Principal Commissioner rejected the condonation request on the grounds of lack of reasonable cause for the delay.

The High Court analyzed the facts, noting that the petitioner filed the return as per Section 139(4) and sent the acknowledgment late due to his wife's critical illness. The Court emphasized the genuine hardship faced by the petitioner, as he diligently filed the return but failed to send Form No.V within the prescribed time. The Court referred to the CBDT circular providing discretion to condone delays in genuine cases, considering the circumstances of the petitioner's wife's illness and hospitalization.

Consequently, the High Court quashed the order of the Principal Commissioner and allowed the petitioner's application for condonation of delay under Section 119(2)(b). The Court directed the Income Tax Department to process the petitioner's refund claim of ?43,590 for Assessment Year 2015-16, disregarding the delay. The Department was instructed to conclude the processing and issue the refund within three months from the date of the Court's order, thereby allowing the writ petition in favor of the petitioner.