The Kerala High Court in the case of K C Antony vs Principal Commissioner has held that Section 119(2)(b) of the Income-tax Act, 1961 does not impose any limitation for the purpose of filing an application for condonation of delay.
Facts of the case:
- The petitioner/assessee did not file his return of income for the assessment year 2010–11 within the time specified under Section 139.
- Due date for filing a return for the assessment year 2010–2011 was July 31, 2010, and the last date upto which return of income could be filed (for that year) was March 31, 2012 but the assessee filed his return on July 13, 2012 since petitioner was suffering from ailments and was hospitalised.
- When the return was not processed for several years, assessee made an inquiry in the month of June 2020 along with filing of writ petition, the respondent required the assessee to file the application for the condonation of delay which the assessee filed on January 20, 2021.
- The application was rejected on the ground that it was not filed within a period of six years from the end of the relevant assessment year.
- Assessee contended in writ petition that if the application was filed beyond the six years then it is under the jurisdiction of High Court to condone the delay under Article 226 of the Constitution of India.
- 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.
Questions framed for adjudication:
- Is there any limit to file application for condonation of delay in Section 119(2)(b).
Decision by the High Court:
- The court determined that the delay in filing the application for any exemption, deduction, refund, or other relief after the expiry 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 of jurisdiction.
- Section 119(2)(b) states that the delay that is to be condoned is the delay in making the application.
- Accordingly, the court quashed the order and remanded the matter back to the department to consider the matter afresh and decide whether the delay from 1.4.2012 to 13.7.2012 can be condoned irrespective of the date of filing of application.
- The court also mentioned the time duration for the purpose of computing interest on the refund, and stated,"the refund amount will not carry interest u/s 244A, as it is clear that the assessee didnt pursue his application for nearly eight years. However, the department will pay such interest if the refund is not actually made within 6 weeks from the date assessee is found eligible for the same.
