By K. B. Bhujle | Advocate
New Page 2
Reported :
49 Loss return : Delay in
filing : Condonation of delay : S. 119(2) of Income-tax Act, 1961 : A.Y. 2004-05
: CBDT has power to condone the delay.
[Lodhi Properties Co.
Ltd. v. Dept. of Revenue, 191 Taxman 74 (Del.)]
For the A.Y. 2004-05 the
assessee had filed return loss seeking carry forward of loss. The last date for
filing was 1-11-2004. The assessee’s representative reached the Central Revenue
building at around 5.15 p.m. on 1-11-2004. He was sent from one room to the
other and by the time he reached the room where his return was to be accepted,
it was already 6.00 p.m., when he was told that the return would not be accepted
because the counter had been closed. In such circumstance the return was filed
on the next day, i.e., on 2-11-2004. The assessee filed an application
u/s.119(2) of the Income-tax Act, 1961 to the CBDT for condonation of delay of
one day.
On a writ petition filed by
the assessee challenging the order of rejection, the Revenue contended that
since it was a case of a loss return, there was no provision under the law for
condoning the delay and that S. 119(2)(b) does not apply to such a case.
The Delhi High Court allowed
the writ petition and held as under :
“(i) The CBDT has the
power u/s.119(2) to condone the delay in the case of a return which is filed
late and where a claim for carry forward of losses is made.
(ii) In the instant
case, the impugned order u/s. 119 passed by the CBDT was a non-speaking one.
Normally, the matter would have been remanded to the CBDT to consider the
application of the assessee afresh. However, in the instant case, the delay
was only of one day and the circumstances had been explained and had not
been controverted by the respondents. A sufficient cause had been shown by
the assessee for the delay of one day in filing the return. If the delay was
not condoned, it would cause genuine hardship to the assessee. Thus, in the
circumstances of the case, instead of remanding the matter to the CBDT, the
delay of one day in filing of the return was to be directed to be condoned.”
