Income Tax Act does not impose any limitation for filing an application for condonation of delay: Kerala High Court

The Kerala High Court has held that Section 119(2)(b) of the Income Tax Act does not impose any limitation for the purposes of filing an application for condonation of delay.

The single bench of Justice Gopinath P. has observed that it was completely wrong on the part of the department to treat the date of filing of the application for condonation of delay as the relevant date for the purpose of considering whether it was filed within 6 years or not.

The petitioner/assessee did not file his return of income for the assessment year 2010–11 within the time specified under Section 139. The due date for filing a return for the assessment year 2010–2011 was July 31, 2010, and the last date on which he could have filed his return of income for that year was March 31, 2012. The petitioner filed his return of income only on 13.7.2012.

The petitioner contended that the delay in filing the return for the assessment year 2010–11 was because the petitioner was suffering from ailments and was hospitalised in connection with treatment for a period of about four months starting on February 25, 2012.

Since the return was not processed and the refund was not granted for several years, the petitioner made an inquiry in the month of June 2020 and filed a writ petition. The respondent required the petitioner to file the application for condonation of delay under Section 119(2)(b).

However, the record indicates that the petitioner had already filed an application for condonation of delay on 20.1.2021. The application of the petitioner has been rejected. It was found that the application filed by the petitioner was not within a period of six years from the end of the relevant assessment year.

The petitioner contended that even if the application was filed beyond the period of six years, it is open to the High Court to exercise jurisdiction under Article 226 of the Constitution of India and to condone the delay.

The department contended that the order does not suffer from any illegality, irrationality, or procedural impropriety warranting interference in the exercise of jurisdiction under Article 226 of the Constitution of India.

The court determined that the delay in filing the application for any exemption, deduction, refund, or other relief after the expiration of the period for making the application or claim and dealing with it on its merits in accordance with law is one that can be excused in the exercise of jurisdiction.

Section 119(2)(b) states that the delay that is to be condoned is the delay in making the application.

The court quashed the order and remanded the matter back to the department to consider the matter afresh and decide whether the delay from 31.3.2012 (the last date on which a return could have been filed for Assessment Year 2010–11) to 13.7.2012 (the date of the filing of the return by the petitioner) can be condoned.

"I am of the view that if the delay from 1.4.2012 to 13.7.2012 (104 days) is condoned and the petitioner is found eligible for a refund, the refund amount will not carry any interest u/s 244A of the Income Tax Act, 1961, as it is clear that the petitioner did not pursue his application for nearly eight years (on his own showing). However, the Department will pay such interest if the refund is not actually made within six weeks from the date the petitioner is found eligible for the same," the court said.

Case Title: K C Antony Versus Principal Commissioner

Citation: WP(C) No. 13511 Of 2021

Citation: 2022 LiveLaw (Ker) 598

Date: 17.11.2022

Counsel For Petitioner: Advocate Anish Jose Antony, L. Venkatappa Counsel For

Respondent: Advocate Christopher Abraham

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