2024 (10) TMI 177 - HC - Income Tax

Condonation of delay in terms of Section 119(2)(b) - Permission of to file a revised return of income in order to declare income in accordance with law and condone delay in filing the revised return of income - HELD THAT - In the present case, the order passed has entered into the merits which is not permissible. The order u/s 119(2)(b) of the Act is to be restricted insofar as condonation of delay. While merits may be taken note of, however the said aspect cannot be a conclusive aspect while dealing with the application u/s 119(2)(b) of the Act. Accordingly, we set aside the order u/s 119(2)(b) as the Court also finds that the authority has taken a very restrictive and conservative approach while dealing with Section 119(2)(b), in not noticing the directions of the Central Board of Direct Taxes (CBDT) regarding condonation up to six years. Matter is remitted back to respondent No.1 to reconsider the matter. While so reconsidering, the authority to take note of the directions of the CBDT as per the circular dated 09.06.2015. In light of circular 9/2015, the authority must take a holistic view of the matter insofar as condonation of delay. In light of circular providing that the restriction regarding non-condonation is only for an extent beyond six years. But in the present case, the period sought to be condoned is within the period of six years and the authority to take note of the same appropriately and pass appropriate orders expeditiously.

Summary

The petitioner challenged an order under Section 119(2)(b) of the Income Tax Act, seeking to file a revised return for the assessment year 2018-19. The High Court set aside the order and remanded the matter back to the authority for reconsideration in line with circulars allowing condonation of delay up to six years. The authority must decide within three months. Petitioners can submit additional pleadings.