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TMI Blog2024 (1) TMI 950X X X X Extracts X X X X X X X X Extracts X X X X ..... liberally. Respondent should keep in mind, while considering an application of this nature, that the power to condone the delay has been conferred to enable the authorities to do substantial justice to the parties by disposing the matters on merits. While considering these aspects, the authorities are expected to bear in mind that no applicant stand to benefit by lodging delayed returns. Refusing to condone the delay can result in a meritorious matter being thrown out at the very threshold and cause of justice being defeated. As against this, when the delay is condoned, the highest that can happen is that a cause would be decided on merits after hearing the parties. Thus Delay in filing revised returns is condoned.Respondent shall open the portal within two weeks from today to enable Petitioner to file revised returns.The concerned Authority may pass such order as it deems fit in accordance with law. All rights and contentions of parties are kept open. Authority shall decide the issue whether the petitioner s case that the award/compensation that it received under the Right to Fair Compensation Act is taxable or otherwise. - K.R. SHRIRAM DR. NEELA GOKHALE, JJ. For the Petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15544 of 2023 dtd. 19th December 2023., in paragraphs No. 9 and 10 held as under: 9. While considering the genuine hardship, the PCCIT was not expected to consider a solitary ground as to whether the assessee was prevented by any substantial cause from filing the corrections within a due time. Other factors also ought to have been taken into account. The phrase genuine hardship used in Section 119(2)(b) of the Act should have been construed liberally. The Legislature has conferred the power to condone the delay to enable the authorities to do substantial justice to the parties by disposing the matters on merits. The expression genuine has received a liberal meaning in view of the law laid down by the Apex Court and while considering this aspect, the authorities are expected to bear in mind that ordinarily the applicant, applying for condonation of delay, does not stand to benefit by lodging erroneous returns. Refusing to condone the delay can result in a meritorious matter being thrown out at the very threshold and cause of justice being defeated. As against this, when delay is condoned, the highest that can happen is that a cause would be decided on merits after hearing the partie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n matters of the petitioner.... (p. 737). The Madras High Court in the case of R. Seshammal (P.) Ltd. (supra), was pleased to observe as under: This is hardly the manner in which the State is expected to deal with the citizens, who in their anxiety to comply with all the requirements of the Act pay monies as advance tax to the State, even though the monies were not actually required to be paid by them and thereafter, seek refund of the monies so paid by mistake after the proceedings under the Act are dropped by the authorities concerned. The State is not entitled to plead the hyper-technical plea of limitation in such a situation to avoid return of the amounts. Section 119 of the Act vests ample power in the Board to render justice in such a situation. The Board has acted arbitrarily in rejecting the petitioner's request for refund. (p.187) 15. The phrase genuine hardship used in section 119(2)(b) should have been construed liberally even when the petitioner has complied with all the conditions mentioned in Circular dated 12-10-1993. The Legislature has conferred the power to condone delay to enable the authorities to do substantive justice to the parties by disposing of the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in its proper perspective. As such, it needs consideration afresh. 10. This was followed by this Court in Artist Tree (P.) Ltd. v. Central Board of Direct Taxes [2014] 52 taxmann.com 152 (Bombay), relied upon by Mr. Walve, where paragraph nos. 19, 21 and 23 read as under : 19. The circumstance that the accounts were duly audited way back on 14 September 1997, is not a circumstance that can be held against the petitioner. This circumstance, on the contrary adds force to the explanation furnished by the petitioner that the delay in filing of returns was only on account of misplacement or the TDS Certificates, which the petitioner was advised, has to be necessarily filed alongwith the Return of Income in view of the provisions contained in Section 139 of the said Act read alongwith Income Tax Rules, 1962 and in particular the report in the prescribed Forms of Return of Income then in vogue which required an assessee to attach the TDS Certificates for the refund being claimed. The explanation furnished is that on account of shifting of registered office, it is possible that TDS Certificates which may have been addressed to the earlier office, got misplaced. There is nothing counterfei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, the phrase genuine hardship used in Section 119(2)(b) of the Act should be considered liberally. Respondent should keep in mind, while considering an application of this nature, that the power to condone the delay has been conferred to enable the authorities to do substantial justice to the parties by disposing the matters on merits. While considering these aspects, the authorities are expected to bear in mind that no applicant stand to benefit by lodging delayed returns. Refusing to condone the delay can result in a meritorious matter being thrown out at the very threshold and cause of justice being defeated. As against this, when the delay is condoned, the highest that can happen is that a cause would be decided on merits after hearing the parties. 6. Considering the facts and circumstances of the case when Petitioner strongly feels that the award of Rs. 39,07,595/- that it received under the Right of Fair Compensation Act need not have been offered to tax, the concerned authority should have condoned the delay and considered the matter on merits. 7. In these circumstances, we dispose the petition with the following order: (a) Delay in filing revised returns is condoned. (b) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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