2022 (2) TMI 122 - HC - Income Tax

Condonation of delay in filing the Return - Petitioner was not able to file his return as the TDS was not reflecting in petitioner s 26AS at the time of due date of filing the ITR for the Assessment Year 2018-19 - HELD THAT - Keeping in view the impugned order, this Court is of the view that no adjournment is required. In fact, the Petitioner s application for condonation of delay has been rejected in the present case without giving any reason. In the impugned order, the Respondents had examined the Petitioner s case on merit and rejected the claim of the Petitioner on the ground that the same was not genuine. In the opinion of this Court, the Respondents by deciding an application for condonation of delay has effectively passed an assessment order without giving an opportunity to the Petitioner to argue his case, which is contrary to law. Consequently, the impugned order dated 23rd August, 2021 is set aside and the delay in filing return of the income by the Petitioner for the Assessment Year 2018-19 is condoned.

Summary

Issues:
Challenge to order for Assessment Year 2018-19, Condonation of delay in filing return, TDS not reflecting in 26AS, Jurisdiction of Respondents in deciding condonation of delay application.

Analysis:
1. The petitioner, an NRI based in the UK, challenged the order dated 23rd August, 2021, for the Assessment Year 2018-19, seeking condonation of delay in filing the income tax return. The petitioner received death compensation but faced issues as the TDS details were not reflecting in the 26AS statement initially.

2. The petitioner filed grievances with the Respondents to rectify the 26AS statement, which was updated on 11th March, 2020. Subsequently, the petitioner sought condonation of delay under Section 119(2)(b) of the Income Tax Act, 1961, as the TDS details were not available during the original filing period. However, the Respondents rejected the application without considering the petitioner's explanation properly.

3. The court noted that the Respondents exceeded their jurisdiction by rejecting the condonation of delay application without providing a valid reason. The court emphasized that the Respondents effectively passed an assessment order without allowing the petitioner to present their case, which is against the legal principles.

4. Consequently, the court set aside the impugned order dated 23rd August, 2021, and condoned the delay in filing the income tax return for the Assessment Year 2018-19. The Assessing Officer was directed to re-examine the matter on merit, provide a reasoned order, and grant an opportunity for the petitioner to be heard, ensuring compliance with the law. The writ petition was disposed of with this direction.