2025 (1) TMI 1293 - HC - Income Tax

Taxpayer cannot file revised return after limitation period expires despite subsequent TDS crediting by employer

S. Manonmani Versus The Principal Commissioner of Income Tax-1, The Joint Commissioner of Income Tax, The Income Tax Officer, Chennai

The Madras HC denied the petitioner's request to file a revised return beyond the statutory limitation period under the Income Tax Act, 1961 and CBDT ... Petitioner entitled to file a revised return beyond the period of limitation prescribed under the Income Tax Act, 1961 and beyond the period of limitation under the above mentioned CBDT Circular - HELD THAT:- Petitioner has wrongly declared the gross income as also the taxable income in the return that was filed on 20.11.2012. The necessity for filing a revised return is on account of the subsequent crediting of Tax Deducted at Source (TDS) by the Government who had employed the petitioner for excluding certain works contract as a result of which, the total deduction of tax by the Government for the Assessment Year 2012-2013 would have been Rs. 2,69,338/- instead of Rs. 85,568/-. The attempt of the petitioner is to get a further refund by enhancing the taxable income of the petitioner by filing a revised return. The Income Tax Department has also not issued any notice under Section 148 of the Income Tax Act, 1961 to revise the assessment as the time for revising the assessment had already expired under Section 148 read with Section 151 of the Income Tax Act, 1961. Thus, the question of condonation of delay in the light of the above CBDT Circular cannot be countenanced. The amount that was credited during the subsequent Assessment Year for the Tax Deducted at Source (TDS) during the Assessment Year 2012-2013 at best, can be utilized by the petitioner for the succeeding year. The issues presented and considered in the judgment are as follows:1. Whether the petitioner is entitled to file a revised return beyond the period of limitation prescribed under the Income Tax Act, 1961 and beyond the period of limitation under CBDT Circular No.9 of 2015 dated 09.06.2015.2. Whether the petitioner's application for condonation of delay in filing a revised return is maintainable under Section 119(2)(b) of the Income Tax Act, 1961.Issue-wise detailed analysis:Issue 1:Relevant legal framework and precedents:- CBDT Circular No.9 of 2015 dated 09.06.2015 sets out the conditions for condonation of delay in claiming refund/loss, limiting such applications to within six years from the end of the relevant assessment year.Court's interpretation and reasoning:- The Court noted that the petitioner had declared incorrect income in the original return filed on 20.11.2012, seeking to enhance the taxable income through a revised return.Key evidence and findings:- The petitioner's original return declared a gross total income of Rs. 6,01,242/-, while the revised return sought to increase the taxable income to Rs. 2,22,71,210/-.Application of law to facts:- The Court found that the petitioner's attempt to claim a further refund by revising the income was not justified under the CBDT Circular.Treatment of competing arguments:- The petitioner argued for condonation based on errors in the original return and subsequent TDS credits, while the Respondent relied on the limitations set by the CBDT Circular.Conclusions:- The Court determined that the petitioner's application for condonation of delay in filing a revised return was not maintainable under the CBDT Circular, leading to the dismissal of the Writ Petition.Significant holdings:- The Court held that the petitioner's attempt to revise the return beyond the prescribed limitations was not permissible under the CBDT Circular, resulting in the dismissal of the Writ Petition.This judgment highlights the importance of adhering to statutory limitations and guidelines in seeking condonation of delay in tax matters, emphasizing the need for accuracy and timeliness in filing returns and claims for refunds.