The Madras High Court has instructed the petitioner to submit an application under Section 119(2) of the Income Tax Act, 1961 concerning the refund of TDS related to compensation from a Motor Accident Claims Tribunal (MACT). The delay in filing Income Tax Returns (ITRs) had impeded this process.
The petitioner in this case seeks a direction to the respondents to consider the belated filing of the return of income for the assessment year 2019-20 to enable the consideration of a claim for refund thereafter. The petitioner was involved in a road accident on 07.10.2012, leading to a legal process for compensation. After several legal proceedings, including an appeal, the compensation amount was enhanced to Rs. 73,25,806/-.
However, upon payment of this compensation, the Insurance Company deducted TDS amounting to Rs. 5,69,000/-. To claim a refund of this TDS, the petitioner filed the return of income for the assessment year 2019-20 beyond the specified time limit, along with a representation dated 23.02.2023 for condonation of delay, which remained unresolved.
Dr. B. Ramaswamy, senior standing counsel representing the respondent, accepts notice and assures that the representation would be duly considered and disposed of.
Upon examination of the affidavit and supporting documents, the court noted that it is deemed appropriate to consider an application under Section 119(2)(b) of the Income Tax Act for condonation. However, it remains uncertain whether the petitioner’s representation is available in the records of the Income Tax Department.
The bench of Justice Senthilkumar Ramamoorthy disposed of the writ petition by directing the petitioner to submit an application under Section 119(2)(b) of the Income Tax Act before the jurisdictional authority or first respondent/ PCIT within a maximum period of fifteen days from the date of receipt of a copy of this order.
The PCIT is directed to consider and dispose of the same within one month from the date of receipt of such representation, taking note of the observations outlined in this order. No costs are imposed in this matter.
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