Case Law Details
Jayshree Vs Central Board of Direct Taxes (Madras High Court)
Madras High Court held that the CBDT is not empowered to fix the time limit for filing the application for compounding of offences, which is contrary to the provisions of Section 279(2) of the IT Act. Accordingly, CBDT circular dated 14.06.2019 fixing the same is liable to be struck down.
Facts-
The petitioner had purchased a property in the year 2006 and sold the same in the year 2013. Thereafter, in the same year (2013), she had purchased another property. Therefore, she was under the impression that since she is not an income tax assessee and she had re-invested the capital gain of her sale consideration in another property, she is not liable to pay any income tax to the respondents and hence, she had not filed the income tax returns. However, though the petitioner had not filed her income tax returns on time for A.Y. 2013-2014, she had filed the same belatedly on 13.06.2019. Under these circumstances, the respondent had launched the prosecution against the petitioner on 14.09.2016 for delay in filing of Income Tax Returns for A.Y. 2013-14.
In terms of the provisions of Section 279(2) of the Income Tax Act, 1961, the petitioner had filed an application before the respondents for compounding of offences. However, the said application was rejected for the reason that the same was filed beyond the prescribed time limit.
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