Court overturns tax authority decision on revised return delay, orders reassessment

The High Court set aside the Central Board of Direct Taxes' decision and directed a fresh consideration of condonation of delay in filing the revised return. The Court held that denying the power to admit the revised return through condonation was a legal error. The Assessing Officer will reassess the revised return if relief is granted. The Court allowed the writ petition, disposing of pending applications and instructing parties to receive the order directly from the Court Master.

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Issues:
1. Interpretation of proviso to Section 119(1)(a) of the Income Tax Act, 1961 regarding condonation of delay in filing a revised return.

Analysis:
The petitioner approached the High Court seeking relief after an ex parte assessment led to additions due to not filing returns properly, citing mental health issues. The Court directed the matter to be reconsidered by the Assessing Officer (AO). Subsequently, the petitioner sought condonation of delay in filing a revised return to rectify irregularities. The Central Board of Direct Taxes (CBDT) rejected the request, citing interference with the AO's quasi-judicial powers. The CBDT's decision was based on Section 119(1)(a) which prohibits directing a specific assessment or case disposition. The High Court found the CBDT misunderstood the proviso, as the relief sought was limited to condoning the delay, not directing assessment. The Court held that denying the power to admit the revised return through condonation was a legal error.

The High Court set aside the CBDT's order and directed a fresh consideration of condonation of delay in filing the revised return based on circumstances. If relief is granted, the AO will then assess the revised return on its merits. The Court allowed the writ petition and disposed of all pending applications, instructing parties to receive a copy of the order directly from the Court Master.

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