2023 (1) TMI 629 - AT - Income Tax

Denial of refund to DTC Employees Superannuation Pension Trust - delay in filing the return - TDS was not claimed in the original return but subsequently, TDS was claimed by a revised return - as argued assessee did file their return with original TDS certificate and has been claiming for refund for assessment year 1999-2000, 2000-2001 and 2001-2002 since 2002 - whether assessee entitled to refund for the year 1999-2000 for which revised return was admittedly filed with the original certificate? - HELD THAT - It is only the delay of approximately 8/9 months that has not been condoned and, hence, the assessee s plea for refund was not examined by the authorities below. As a matter of fact, CIT(A), in his order, has not even bothered to mention the date of filing of the return, revision thereof and the quantum of delay which he has found to be fatal. In our considered opinion, on the facts and circumstances, the authorities below have not properly applied their mind. In our considered opinion, on the facts and circumstances of the case and in the interest of justice, 8/9 months delay in filing the return cannot be said to be fatal to the claim of the refund by the assessee. Hence, we condone the delay and remand the issue to the file of the AO. AO shall factually verify the amount of refund and pass an order as per law. We reiterate that the delay in filing the revised return has already been condoned by us. Needless to add, the assessee should be granted adequate opportunity of being heard. Appeal filed by the assessee stands allowed for statistical purposes only.

Summary

Issues:
Refund denial for assessment year 1999-2000 due to TDS not claimed in original return and revised return filed beyond time specified in the Income Tax Act.

Analysis:
1. The appeal was against the Order of the Ld. CIT(A)-40, Delhi, regarding the denial of a refund of Rs. 4,70,222/- to the DTC Employees Superannuation Pension Trust for the Assessment Year 1999-2000.
2. The assessee filed the return for assessment year 1999-2000 on 30/11/1999 without claiming the refund for tax deducted at source. Subsequently, a revised return was filed on 08.09.2000 claiming the refund.
3. The issue arose when the refund request for assessment year 1999-2000 was rejected by the authorities due to the delay in filing the revised return and TDS not being claimed in the original return.
4. The Hon'ble Delhi High Court directed the Revenue authorities to reconsider the claim. The Assessing Officer rejected the claim citing reasons like TDS not claimed in the original return and the revised return being filed beyond the specified time.
5. The ld.CIT(A) upheld the rejection stating that the claim for refund of tax deducted at source must be made while filing the income tax return, and TDS certificates had to be enclosed with the return as per rules.
6. However, the ITAT Delhi found that the delay in filing the revised return should not be fatal to the claim of refund by the assessee. They condoned the delay of 8/9 months and remanded the issue to the AO for factual verification and appropriate decision.
7. The ITAT Delhi allowed the appeal for statistical purposes only, emphasizing that the delay in filing the revised return had been condoned, and the assessee should be given a fair opportunity to present their case.

This detailed analysis highlights the legal proceedings and reasoning behind the judgment, focusing on the denial of the refund for assessment year 1999-2000 and the subsequent decision by the ITAT Delhi to remand the issue for further consideration.