Section 119(2)(b) doesn’t empower PCIT to consider merits of claim of income

Best Ready Mix Concrete Vs PCIT (Kerala High Court)

Kerala High Court held that section 119(2)(b) of the Income Tax Act doesn’t empower Principal Chief Commissioner/ Principal Commissioner of Income Tax to consider the merits of the claim of income, loss, etc.

Facts- The present writ petition has been filed impugning the order passed by the Principal Commissioner of Income Tax, Kozhikkode u/s. 119(2)(b) of the Income Tax Act, 1961 rejecting the application of the petitioner for condonation of delay of one day in filing the income tax return for the assessment year 2021-22.

Conclusion- On a perusal of Section 119(2)(b) of the Act, it is evident that the said Section only empowers the Board to admit an application or claim for exemption, deduction, refund or any other relief under the Act, after the expiry of the period specified by or under the Act for making such application or claim and deal with the same on merits, in accordance with law. The Board has delegated such power to the Principal Chief Commissioner of Income Tax/the Principal Commissioner of Income Tax vide its circular No.9/2015 dated 9.6.2015.

Held that considering the provisions of Section 119(2)(b) of the Act and the Circular dated 9.6.2015, the order impugned, is unsustainable and the same is hereby set aside. The writ petition stands allowed.

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