The Kerala High Court directed to consider condonation application for 234-day delay in filing an appeal on rectification application against the Rejection of the Foreign Tax Credit (FTC) Claim.
Padmanabhan Viswanathan, the petitioner filed a writ of mandamus to command the 2nd respondent to refrain from recovering the demand under the rectification order, pending disposal of the appeal and stay petition before the 3rd respondent in respect of the assessment year 2021-22.
The petitioner filed a return of his income for the assessment year 2021-22 on 31.3.2022 declaring a total income of Rs.5,87,59,725/-. The petitioner claimed a foreign tax credit of Rs.1,79,29,048/-. The assessing authority did not agree with the claim of the petitioner for FTC vide intimation dated 28.10.2022 under Section 143(1) of the Income Tax Act, 1961 and a demand of Rs.2,28,80,370/- was made.
Petitioner thereafter filed an application under Section 154 of the Income Tax Act against the rejection of the FTC claim. However, the rectification application was rejected vide order dated 11.1.2023 and a demand of Rs.2,41,49,000/- was raised from the petitioner. Petitioner has filed an appeal along with an application for condonation of delay.
The appeal is filed under Section 246 of the IT Act before the 3rd respondent. There is a delay of 234 days in filing the appeal. There is a huge delay in filing the appeal.
The single judge bench of Justice Dinesh Kumar Singh the appellate authority to consider the application for condonation of delay expeditiously, preferably within two months and if delay is condoned, the appellate authority should take up the stay application filed by the petitioner and dispose of the same expeditiously.
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