Legal Heir Allowed to File Late TDS Refund Return for Deceased Under Section 119(2)(b)

The HC set aside the order rejecting the waiver of time limit for filing the return to claim TDS refund on the late father's income. The court held that the legal heir is entitled to file the return only for the AY in which the assessee died, but the respondent improperly denied condonation of delay without genuine hardship or valid reasons. The HC noted settled law requiring consideration of the claim on merits, especially where no dues remain against the deceased. The petitioner was allowed to file the return and claim the refund, which the AO must examine in accordance with law. The petition was allowed and the impugned order under section 119(2)(b) was quashed.

---

---

Issues involved:
The issues involved in this legal judgment include the petitioner's request to quash an order passed by the Principal Commissioner of Income Tax under section 119(2)(b) of the Income Tax Act for A.Y. 2017-18 and the request to allow the application for condonation of delay in filing the income tax return for the same assessment year.

Issue 1 - Quashing of Impugned Order:
The petitioner, a legal heir, sought to quash an order passed by the Principal Commissioner of Income Tax under section 119(2)(b) of the Income Tax Act for A.Y. 2017-18. The petitioner argued that the impugned order was unjust as it rejected the application for waiver of the time limit for filing the return. The petitioner highlighted that the amount of refund on account of TDS was not in dispute, and genuine hardships were faced due to taking over the business of the deceased father. The petitioner cited legal precedents to support the claim for condonation of delay.

Issue 2 - Application for Condonation of Delay:
The petitioner requested the respondents to allow the application to condone the delay in filing the income tax return for A.Y. 2017-18. The petitioner, a legal heir, explained the circumstances leading to the delay, including the transition of taking over the deceased father's business and the claim for refund due to TDS. The respondent No. 1, the Principal Commissioner of Income Tax, rejected the application citing reasons such as the petitioner filing the return for the previous assessment year and not attaching the death certificate of the father. The respondent argued that the petitioner should have filed the return in his individual capacity as a legal heir.

Judgment Summary:
The High Court considered the arguments presented by both sides and analyzed the provisions of Section 119(2)(b) of the Income Tax Act. The Court noted that the respondent No. 1's rejection of the application was not in line with the legal principles established by previous court decisions. The Court referred to various legal cases to emphasize the need for a liberal interpretation of "genuine hardship" and the importance of advancing the cause of justice. Ultimately, the Court found that the petitioner was entitled to the refund amount and allowed the petition. The impugned order was quashed, and the petitioner was permitted to file the return of income to claim the refund, which would be considered by the proper Assessing Officer in accordance with the law.

---