2024 (10) TMI 101 - HC - Income Tax

Deduction u/s 80P - delay in filing Return of Income for claiming deduction - HELD THAT - The case is remitted back to the respondent to pass a fresh orders after taking note of the aforesaid order passed by the CIT, condoning the delay in filing the return u/s 139 of the Income Tax Act, 1961. The Officer shall re-examine the issue as to whether the petitioner would be entitled to the benefit of Section 80P of the Income Tax Act, 1961. The respondent shall pass orders on merits in accordance with law, within a period of twelve weeks from the date of receipt of a copy of this order. Needless to state, the petitioner shall be heard, if the petitioner so desires.

Summary

Issues:
Delay in filing return of income for Assessment Year 2018-2019, rejection of condonation request by Chief Commissioner of Income Tax, challenge in Writ Petition No. 18538 of 2021, granting liberty to approach appropriate authority, condonation of delay by Competent Authority under Circular No.13 of 2023, setting aside impugned order, remitting case back to respondent for fresh orders.

Analysis:
The petitioner, a Co-operative Society, filed a belated return of income for the Assessment Year 2018-2019 due to delays in government auditing. The petitioner sought condonation of delay under Section 119(2)(b) of the Income Tax Act, 1961. The Chief Commissioner of Income Tax (OSD) initially rejected the request, leading to the present writ petition challenging the decision (para 2-3).

In response to the writ petition, the High Court granted the petitioner liberty to approach the appropriate authority as per Circular No.13 of 2023 within four weeks. The court emphasized the need for the appropriate authority to dispose of the application within six weeks if filed (para 4).

During the subsequent hearing, it was revealed that the Competent Authority had indeed condoned the delay in filing the return of income for claiming deduction under Section 80P of the Income Tax Act, 1961. The Competent Authority's order highlighted that the delay was due to audit completion beyond the specified due date, warranting condonation (para 5).

Considering the Competent Authority's decision, the High Court set aside the impugned order and remitted the case back to the respondent. The respondent was directed to re-examine the petitioner's entitlement to the benefit of Section 80B of the Income Tax Act, 1961, and pass orders within twelve weeks. The petitioner's right to be heard in the process was affirmed (para 6).

Ultimately, the writ petition was disposed of with no costs awarded, and the connected miscellaneous petition was closed (para 7). The judgment underscores the importance of timely filing of returns and the authority's discretion in condoning delays under relevant provisions and circulars.