2009 (9) TMI 236 - HC - Income Tax

Condonation of delay Delay in filing return In this case Punjab & Haryana High Court-held that there was no satisfactory explanation for the delay in filing returns, thus the refusal to condone the delay was valid. The writ petition has dismissed Decision in favor of revenue against the assessee.

Summary

Issues: Challenge to order rejecting refund application and condonation of delay in filing returns for assessment years 1991-92 to 1994-95.

The judgment delivered by M. M. Kumar J. addressed the challenge to the order passed by the Commissioner of Income-tax rejecting the petitioner's application for refund and condonation of delay in filing returns for the assessment years 1991-92 to 1994-95. The Commissioner did not accept the excuse of terrorism in the State of Punjab as a valid reason for the delay, noting that the petitioner had completed a contract work within the allowed time, indicating the ability to file returns on time as well. The claim of a partner's illness and other partners being occupied with his treatment was also dismissed due to lack of evidence supporting these claims. Similarly, the excuse of the firm's munshi passing away was rejected, as it was deemed unreasonable that the firm could not have engaged a replacement over a four-year period.

Upon hearing arguments from both parties, the court found that the Commissioner's findings in the order did not exhibit any legal flaws necessitating intervention. The judgment emphasized the principle that if two reasonable opinions exist, the order cannot be overturned solely based on a preference for another opinion. The court concluded that the Commissioner's reasoning was logical and evidence-based, deeming the writ petition as misconceived and consequently dismissing it.