2013 (10) TMI 1033 - HC - Income Tax

Condonation of delay in filing returns of Income Application of Circular no. 670 dt. October 26 1993 Held that - On a perusal of the above circular quoted above when the Commissioner of Income-tax is satisfied that the returns were not filed due to reasons beyond the control of the assessee he may refer the matter to the Board for reconsideration. In the instant case for one year the Commissioner of Income-tax was satisfied that the delay in filing the return were not attributable to the petitioners. Therefore he is not justified in extending the same to other years - Remitted the matter to the Commissioner of Income-tax to decide whether he will condone the delay or refer the matter to the Board for consideration Decided in favor of Assessee.

Summary

Issues: Challenge to orders rejecting petitions for waiver of interest under sections 234A, 234B, and 234C of the Income-tax Act, 1961, refusal to condone the delay in filing returns for specific years.

Analysis:
The petitioners, owners of a school, challenged orders rejecting their petitions for interest waiver and delay condonation in filing returns. They sought writs to quash the orders and requested interest waiver and refund for specific assessment years. The petitioners argued for waiver based on a Circular and late payment due to government delay. The respondents contended that no valid returns were filed for certain years, justifying interest levied. Circular No. 670, dated October 26, 1993, was cited, with the respondents arguing it does not allow belated returns for excess payments under section 140A.

The judgment noted that the Commissioner may refer matters to the Board for reconsideration if returns were not filed due to reasons beyond the assessee's control. While the Commissioner acknowledged delay reasons for one year, this reasoning should not extend automatically to other years. Thus, the impugned orders were set aside, and the matter was remitted to the Commissioner to decide on delay condonation or Board referral within six months. The original petition was disposed of with this direction.