2024 (11) TMI 698 - HC - Income Tax

Court Quashes Income Tax Reassessment Orders; Review Must Focus on Genuine Delay Reasons Only.

VENI KARUNAKUMARI REGHUVARAN D/O LATE REGHUVARAN NAIR VELAYUDHAN PILLAI Versus THE PRINCIPAL COMMISSIONER OF INCOME TAX, THE INCOME TAX OFFICER

The HC of Kerala annulled orders Exts.P11 and P12 issued by the Principal Commissioner of Income Tax, mandating a reassessment of the petitioner's delay ... Application for condonation of delay for filing revised returns - HELD THAT:- ere is some merit in the contention taken by the learned counsel for the petitioner that the merits of the claim raised by the petitioner had been considered while deciding whether the application for condonation of delay for filing revised returns for the assessment year 2021-2022 should be granted or not. The fact that the merits of the claim raised by the petitioner was considered is clear from a reading of Exts.P7 and P8 notices issued by the Income Tax Officer prior to the consideration of the matter by the Principal Commissioner. The impugned orders are liable to be set aside and the applications filed by the petitioner for condonation of delay u/s 119(2)(b) of the Income Tax Act 1961, are to be restored for the consideration of the Principal Commissioner of the Income Tax, Thiruvananthapuram, who shall consider as to whether there was sufficient reason for condonation of delay. The High Court of Kerala set aside orders Exts.P11 and P12 by the Principal Commissioner of Income Tax, directing reconsideration of the petitioner's applications for condonation of delay without evaluating the merits of the claim. The court emphasized that the applications should be reviewed solely based on genuine reasons for delay. The Principal Commissioner was instructed to issue new orders after providing the petitioner with a hearing.