Kerala HC restores ‪Order u/s 119(2)(b) of Income Tax Act to decide on Matter of Condonation of Delay in Filing Appeal [Read Order]

In a recent case, the Kerala High Court restored the ‪order under section 119(2)(b) of Income Tax Act, 1961 to decide on matter of condonation of delay in filing appeal. The court restored the matter for the consideration of the Principal Commissioner of the Income Tax,who shall consider as to whether there was sufficient reason for condonation of delay.

Veni Karunakumari Reghuvaran , the petitioner was represented by Marthanda Varma Pandalai.K and S.Hemalatha. The respondent was represented by G.Keerthivas and P.G.Jayashankar.

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The writ petition has been filed challenging orders issued by the Principal Commissioner of Income Tax, Thiruvananthapuram, under section 119(2)(b) of the Income Tax Act 1961, principally on the ground that the application for extension of time/condonation of delay in filing revised returns for the assessment tier 2021-2022 has been rejected after examining the merits of the claim raised by the petitioner. 

It is clear from notices issued prior to the consideration of the applications that the merits of the claim raised by the petitioner as the representative assessee of her deceased parents was considered while deciding the application under section 119(2)(b).

It was contented that in application under section 119(2)(b) must be considered only on the ground as to whether there was genuine hardship and whether there is a good ground for extension of time/condonation of delay and not on the merits of the claim raised by the petitioner.

The Standing Counsel for the Income Tax Department submitted that the reading of the impugned orders indicate that the applications had been rejected after taking into consideration, the instructions issued by the Central Board on 09.06.2015.

A single bench of Justice Gopinath P viewed that there 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 notices issued by the Income Tax Officer prior to the consideration of the matter by the Principal Commissioner.

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The court set aside and the applications filed by the petitioner for condonation of delay under section 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 principal commissioner shall not consider the merits of the claims raised by the petitioner and shall only consider whether genuine reasons are shown for condonation of delay. The principal commissioner shall pass fresh orders after affording an opportunity of hearing to the petitioner.”, the bench added.

To Read the full text of the Order CLICK HERE

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