Does the Central Board
of Direct Taxes (CBDT) have the power under section 119(2)(b) to condone the
delay in filing return of income?
Case: Lodhi Property Company
Ltd. v. Under Secretary, (ITA-II), Department of Revenue (2010) 323 ITR 0441
(Del.)
Section : 19(2)(b)
of Income-Tax Act ,1961
Facts
The assessee filed
the annual return with one day delay. The delay was due to administration
process in the IT office as the representative of assessee was not received
correct guidance for locating the exact section where his IT return was to be
filed.
The issue under consideration is
whether the CBDT has the power under section 119(2)(b) to condone the delay in
filing return of income.
The High Court held that the Board has the
power to condone the delay in case of a return which was filed late and where a
claim for carry forward of losses was made. The delay was only one day and the
assessee had shown sufficient reason for the delay of one day in filing the
return of income. If the delay is not condoned, it would cause genuine hardship to the petitioner.
Therefore, the Court held that the delay of one day in filing of the return has
to be condoned.
Section
119(2)(b) empowers the CBDT to authorise any income tax authority to admit an
application or claim for any exemption, deduction, refund or any other relief
under the Act after the expiry of the period specified under the Act, to avoid
genuine hardship in any case or class of cases.
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