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2025 (1) TMI 1293 - HC - Income TaxPetitioner entitled to file a revised return beyond the period of limitation prescribed under the Income Tax Act 1961 and beyond the period of limitation under the above mentioned CBDT Circular - HELD THAT - Petitioner has wrongly declared the gross income as also the taxable income in the return that was filed on 20.11.2012. The necessity for filing a revised return is on account of the subsequent crediting of Tax Deducted at Source (TDS) by the Government who had employed the petitioner for excluding certain works contract as a result of which the total deduction of tax by the Government for the Assessment Year 2012-2013 would have been Rs. 2, 69, 338/- instead of Rs. 85, 568/-. The attempt of the petitioner is to get a further refund by enhancing the taxable income of the petitioner by filing a revised return. The Income Tax Department has also not issued any notice under Section 148 of the Income Tax Act 1961 to revise the assessment as the time for revising the assessment had already expired under Section 148 read with Section 151 of the Income Tax Act 1961. Thus the question of condonation of delay in the light of the above CBDT Circular cannot be countenanced. The amount that was credited during the subsequent Assessment Year for the Tax Deducted at Source (TDS) during the Assessment Year 2012-2013 at best can be utilized by the petitioner for the succeeding year.
ISSUES PRESENTED and CONSIDERED
The primary issue considered by the Court was whether the petitioner was entitled to file a revised income tax return for the Assessment Year (A.Y.) 2012-13 beyond the statutory period of limitation as prescribed under the Income Tax Act, 1961 and the Central Board of Direct Taxes (CBDT) Circular No.9/2015 dated 09.06.2015. Specifically, the Court examined whether the delay in filing the revised return could be condoned under Section 119(2)(b) of the Income Tax Act, 1961. ISSUE-WISE DETAILED ANALYSIS Relevant Legal Framework and Precedents The relevant legal framework includes Section 119(2)(b) of the Income Tax Act, 1961, which empowers the CBDT to condone delays in certain circumstances. The CBDT Circular No.9/2015 outlines the conditions under which such condonation applications can be entertained, specifically stating that no application for claim of refund or loss shall be entertained beyond six years from the end of the relevant assessment year. Court's Interpretation and Reasoning The Court noted that the petitioner sought to revise the return for A.Y. 2012-13 to claim additional Tax Deducted at Source (TDS) credit, which was not initially claimed. The Court emphasized that the CBDT Circular No.9/2015 clearly restricts the condonation of delay for such claims beyond six years from the end of the assessment year. The petitioner's application for condonation was filed after this period had expired. Key Evidence and Findings The petitioner initially filed a return on 20.11.2012, declaring a gross total income of Rs. 6,01,242/- and a net taxable income of Rs. 5,01,240/-. The petitioner later sought to revise this return to claim additional TDS credit of Rs. 1,83,770/-, arguing that the TDS certificate was issued in a subsequent financial year. The Court found that the petitioner had incorrectly declared the income and TDS in the original return. Application of Law to Facts The Court applied the provisions of the CBDT Circular and Section 119(2)(b) of the Income Tax Act to the facts, concluding that the petitioner's application for condonation was not maintainable due to the lapse of the six-year limitation period. The Court also noted that the petitioner had not demonstrated genuine hardship or provided a valid reason for the delay that would warrant condonation. Treatment of Competing Arguments The petitioner argued that the delay was due to the late issuance of the TDS certificate by the government, which employed the petitioner. However, the Court found that this did not constitute sufficient grounds for condonation, especially given the clear limitation period stipulated in the CBDT Circular. The Court also noted that no assessment order had been passed under Sections 143(1) or 143(3) of the Income Tax Act, which might have provided a basis for revising the return. Conclusions The Court concluded that the petitioner's application for condonation of delay was not maintainable under the CBDT Circular and Section 119(2)(b) of the Income Tax Act. The petitioner's attempt to claim additional TDS credit for A.Y. 2012-13 was not permissible beyond the prescribed limitation period. SIGNIFICANT HOLDINGS Preserve Verbatim Quotes of Crucial Legal Reasoning The Court reiterated the principle from the CBDT Circular: "No condonation application for claim of refund / loss shall be entertained beyond six years from the end of the assessment year for which such application / claim is made." Core Principles Established The judgment reaffirmed the principle that statutory limitation periods must be strictly adhered to, and condonation of delay can only be granted in exceptional circumstances where genuine hardship is demonstrated. Final Determinations on Each Issue The Court determined that the petitioner's application for condonation of delay was not maintainable, and the petitioner was not entitled to file a revised return for A.Y. 2012-13 beyond the prescribed limitation period. Consequently, the writ petition was dismissed.
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