Sureshan M. Vs PCIT (Kerala High Court)
Introduction: The Kerala High Court recently dismissed a writ petition challenging an order by the Principal Commissioner of Income Tax, Kozhikkode, rejecting an application for the condonation of delay in filing a refund application for the assessment year 2011-12. The court upheld the Circular issued by the Central Board of Direct Taxes (CBDT), empowering the tax authorities to prescribe a time limit for condonation of delay.
I. Background: A. Impugned Order and Circular:
- The petitioner’s application to condone the delay in filing a refund application for the assessment year 2011-12 was dismissed by the Principal Commissioner of Income Tax.
- The dismissal was based on Circular Ext.P7, issued by the CBDT on 9.6.2015, which delegated the power to condone the delay up to Rs.50 lakhs to the Principal Chief Commissioners of Income Tax and Chief Commissioners of Income Tax.
- The Circular explicitly stated that no application for condonation of delay would be entertained beyond six years from the end of the assessment year.
II. Grounds for Dismissal: A. Delay Beyond Six Years:
- The petitioner’s application was filed beyond the stipulated six-year period, leading to its rejection.
- The court found no ground to entertain the writ petition considering the clear violation of the prescribed time limit.
B. Challenge to Circular P7:
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