The Delhi High Court directed the Principal Chief Commissioner of Income Tax to decide application in the matter of application for condonation of delay for filing the income tax returns (ITR).
Present writ petition has been filed seeking issuance of directions to the Respondents No. 2 and 3 to allow the Petitioner to file the return of income for the Assessment Year 2017-18 and to condone the delay in its filing.
The counsel for the Petitioner stated that the Petitioner had executed a Technology Transfer Agreement (‘TTA’) dated 28th April, 2016 for assignment of technology from the Petitioner to ICA Pidilite Private Limited (‘ICA-PIL’) and that the Petitioner did not file return of income for the Assessment Year 2017-18 under the impression that tax had been deducted at the time of remittance received from ICA-PIL pursuant to the TTA.
The counsel for the Petitioner placed reliance upon the Circular No.9/2015 dated 09th June, 2015, as well as Circular No. 07/2023 dated 31st May, 2023 issued by the Central Board of Direct Taxes (‘CBDT’), which state that application for condonation of delay shall not be entertained beyond six years from the end of the Assessment Year for which such application/claim is made and that the case of the Petitioner is within limitation as prescribed in the Circular No. 9/2015, i.e., within six years from the end of the Assessment Year for which such application is made.
The counsel for the Petitioner stated that the Petitioner duly filed the application for condonation of delay dated 29th June, 2023 on 11th July, 2023 for filing the Income Tax Return for the Assessment Year 2017-18 for claiming refund under Section 119(2)(b) of the Income Tax Act, 1961 with the Respondent No.2-PCCIT. However, no action has been taken on the aforesaid application till date.
A Division Bench comprising Acting Chief Justice Manmohan and Justice Mini Pushkarna observed that “Keeping in view the aforesaid, the present writ petition is disposed of with a direction to the Respondent No.2-PCCIT to decide the Petitioner’s application for condonation of delay dated 29th June, 2023 filed on 11th July, 2023 by way of a reasoned order in accordance with law within twelve weeks. The rights and contentions of all the parties are left open.”
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