Income Tax Return Delays: High Court Rules on Tax Authority's Decision-Making Boundaries

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..... 119(2)(b) of the Income Tax Act, 1961 . This provision is central to the dispute, as it concerns the condonation of delay in filing tax returns and the extent of the authority vested in the tax officials regarding such matters. The principal issue is whether the tax authorities, specifically the Principal Commissioner of Income Tax, can consider the merits of the claim (income/loss) while decidi .....

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..... ection focused on the lack of evidence regarding the petitioner's claims, rather than solely on the grounds for the delay in filing the return. Legal Analysis Scope of Section 119(2)(b) : This section empowers the Board to authorize any income-tax authority to admit applications or claims for exemptions, deductions, refunds, or other reliefs after the expiry of the specifie .....

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..... mpugned Order : The High Court set aside the order of the Principal Commissioner, deeming it unsustainable due to its focus on the merits of the income/loss claim. Remitting the Matter for Fresh Consideration : The case was sent back to the Principal Commissioner of Income Tax for a fresh decision, with instructions to focus only on the merits of the application for condonation of delay, .....

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