Court overturns order rejecting delay in tax return, directs re-examination and compliance with legal principles. The court set aside the order rejecting condonation of delay in filing the income tax return for Assessment Year 2018-19, emphasizing that the Respondents ...
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Court overturns order rejecting delay in tax return, directs re-examination and compliance with legal principles.
The court set aside the order rejecting condonation of delay in filing the income tax return for Assessment Year 2018-19, emphasizing that the Respondents exceeded their jurisdiction. The court directed the Assessing Officer to re-examine the matter, provide a reasoned order, and grant the petitioner an opportunity to be heard, ensuring compliance with legal principles.
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.
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