Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2019 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (4) TMI 1169 - HC - Income TaxCondonation of delay in filing claim of carry forward losses u/s 119(2)(b) - After realising the mistake after change of CA petitioner filed an application before the CBDT for condonation of delay in filing the return of income claiming loss - rejected by CBDT stating that petitioner was not prevented from any circumstances beyond its control, no external factors preventing the petitioner from filing its revised return and petitioner is continuously earning profits and it cannot be said that payment of taxes will cause any genuine hardship to the bank - HELD THAT:- It is true that the authorised signatory and CEO of the Bank had signed the return of income, it cannot be gainsaid that the concerned officer would have relied upon the Chartered Accountant to have prepared a correct return of income. It is only after the income tax matters were handed over to another firm of Chartered Accountants, and the authorised representative called for the old records so as ascertain and substantiate the amount of brought forward losses available for set-off that it could be detected that though there was a book loss Thus, it was because of circumstances beyond its control that the petitioner could not file the return of income u/s 139(9) within the specified time, inasmuch as the error committed while filing of the return of income did not come to its notice till the Chartered Accountants were changed and the authorised representative called for the old records so as ascertain and substantiate the amount of brought forward losses available for set-off. Therefore, the petitioner has made out a case of genuine hardship for admitting the claim after the expiry of the period specified under the Act. In the opinion of this court, if one considers the reasoning adopted by the Board for rejecting the application, in no case would a bank or a company be in a position to avail of the benefit of section 119(2)(b) as all banks and companies would have employees who maintain the daily accounts and prepare or assist in preparation of Profit and Loss account as well as balance sheet; such books of account are subject to audit by regular auditors as well as tax auditors. It is in cases like the present one, wherein despite the aforesaid position, in case of genuine hardship, if on account of reasons beyond the control of the assessee, an application or claim is not made by the assessee within the period specified in the Act, that powers u/s 119(2)(b) are required to be exercised. In light of the above discussion, this court is of the considered view that the CBDT ought to have exercised such powers u/s 119(2)(b) of the Act and condoned the delay in filing the return of income.
|