Venkata Vijaya Saradhi Molleti Vs Union of India (Telangana High Court)
Summary: The Telangana High Court allowed the writ petition filed by Venkata Vijaya Saradhi Molleti challenging the Income Tax Department’s order dated 30 April 2026, which rejected his application under Section 119(2)(b) of the Income-tax Act, 1961, for condonation of delay in filing a revised income-tax return for Assessment Year 2022-23 to claim exemption on leave encashment under Section 10(10AA)(ii). The petitioner submitted that the issue was squarely covered by the Court’s earlier decision dated 28 October 2026 in Srinivas Tirumala Vs Union of India & Others, W.P. No. 34359 of 2026, wherein the Court had condoned the delay and directed reconsideration of the revised return by extending the benefit of Notification No. 31/2023 dated 24 May 2023. The Department’s Senior Standing Counsel did not dispute the applicability of the earlier decision. Following the same, the High Court set aside the impugned rejection order dated 30 April 2026, condoned the delay in filing the revised income-tax return and remanded the matter to the competent authority to reconsider the petitioner’s claim for Assessment Year 2022-23 by extending the benefit of Notification No. 31/2023 and pass appropriate orders strictly in accordance with law. The writ petition was accordingly allowed, with no order as to costs, and pending miscellaneous petitions were closed.
Cases Discussed:
- Srinivas Tirumala Vs Union of India & Others (Telangana High Court); W.P. No. 34359 of 2026; 28/10/2026. The principal precedent expressly followed. The Court relied on its operative directions setting aside the rejection of a condonation application and requiring reconsideration of the revised return with the benefit of Notification No. 31/2023. A verified direct TaxGuru URL for this particular judgment was not established, so no case hyperlink has been inserted.
FULL TEXT OF THE ORDER OF TELANGANA HIGH COURT
Heard Mr. P.V.Prasad learned counsel for the petitioner and Mr. Kamasani Sudhakar Reddy, learned Senior Standing Counsel for the Income Tax Department appearing for respondent Nos.2 to 4. Perused the record.
2. The present writ petition has been filed seeking to grant the following relief:
“… to issue a Writ, order or direction, more particularly one in the nature of a Writ of Mandamus, declaring the order dated 30.04.2026 bearing DIN & Order No.ITBA/COM/ F/17/2026-27/1088732614(1) passed by respondent No.3 under Section 119(2)(b) of the Income Tax Act, 1961, rejecting the petitioner’s application for condonation of delay in filing a revised return of income for the Assessment Year 2022-23 as illegal, arbitrary, contrary to Section 119(2)(b) of the Income Tax Act, 1961, and violative of Articles 14 and 265 of the Constitution of India, and consequently to set aside the same and direct respondent No.3 to condone the delay and permit the petitioner to file a revised return of income tax for the said Assessment Year 2022-23 claiming exemption under Section 10(10AA)(ii) of the Income Tax Act, 1961 in terms of Notification No.13/2023 dated 24.05.2023 and/or pass such other order or orders as this Hon’ble Court may deem fit and proper in the circumstances of the case.”
3. Learned counsel for the petitioner submits that the issue involved in the present writ petition is squarely covered by order dated 28.10.2026 passed by this Bench in WP.No.34359 of 2026. The operative portion of the order reads as under:
“In that view of the matter, for the reasons assailed in the writ petition, the petitioner has made valid reasons to condone the delay for filing of the revised return of income before the competent authority i.e., 3rd respondent. Therefore, in view of the above aforesaid facts and circumstances, the impugned proceedings dated 20.01.2026 are hereby set aside and the delay in filing the said application is hereby condoned and the matter is remanded back to the 3rd respondent to consider the case of the petitioner in respect of the revised return of income for the relevant Assessment Years, by extending the benefit of Notification No.31/2023, dated 24.05.2023, and pass orders strictly in accordance with law.
With the aforesaid directions, the Writ Petition stands allowed accordingly.”
4. The aforesaid submission is not disputed by the learned Senior Standing Counsel for the Income Tax Department.
5. In view of the same, for the reasons alike in the aforesaid order, dated 28.10.2026, this Writ Petition also stands allowed. The impugned order, dated 30.04.2026, rejecting the application for condonation of delay in filing the revised Income Tax Return for Assessment Year 2022-2023, is hereby set aside and the delay in filing the revised Income Tax Return is condoned. The matter is remanded back to respondent No.3 to consider the case of the petitioner in respect of the revised Income Tax Return for the relevant Assessment Year, by extending the benefit of Notification No.31/2023, dated 24.05.2023, and pass orders strictly in accordance with law. There shall be no order as to costs.
Miscellaneous petitions, if any, pending in this Writ Petition shall stand closed.
