Income Tax Return Delays: High Court Rules on Tax Authority's Decision-Making Boundaries

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....he Income Tax Act, 1961. This provision is central to the dispute, as it concerns the condonation of delay in filing tax returns and the extent of the authority vested in the tax officials regarding such matters. The principal issue is whether the tax authorities, specifically the Principal Commissioner of Income Tax, can consider the merits of the claim (income/loss) while deciding on an applicat....

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....ce regarding the petitioner's claims, rather than solely on the grounds for the delay in filing the return. Legal Analysis * Scope of Section 119(2)(b): This section empowers the Board to authorize any income-tax authority to admit applications or claims for exemptions, deductions, refunds, or other reliefs after the expiry of the specified period, but does not explicitly grant the power ....