Case Law Details
Industria Chimica Adriatica Ica Vs Union of India & Ors (Delhi High Court)
Introduction: In a recent ruling, the Delhi High Court intervened in the case of Industria Chimica Adriatica Ica, directing the Principal Chief Commissioner of Income Tax (PCCIT) to make a decision on the application for condonation of delay in filing the Income Tax Return (ITR) for the Assessment Year 2017-18. The petitioner sought relief, citing a Technology Transfer Agreement (TTA) and claiming entitlement to file the return beyond the stipulated period.
Detailed Analysis: Industria Chimica Adriatica Ica executed a Technology Transfer Agreement on 28th April 2016, transferring technology to ICA Pidilite Private Limited (ICA-PIL). The petitioner refrained from filing the return for the Assessment Year 2017-18, believing that tax had already been deducted during the remittance received from ICA-PIL pursuant to the TTA.
The petitioner’s counsel referred to Circular No.9/2015 dated 09th June 2015 and Circular No. 07/2023 dated 31st May 2023, issued by the Central Board of Direct Taxes (CBDT). These circulars specify that applications for condonation of delay will not be entertained beyond six years from the end of the Assessment Year in question. The petitioner asserted that their case fell within the prescribed limitation of six years from the end of the relevant Assessment Year, as outlined in Circular No.9/201.
The application for condonation of delay was submitted on 29th June 2023, and the petitioner contends that, to date, no action has been taken by the Respondent No.2-PCCIT. Seeking resolution, the petitioner approached the Delhi High Court, leading to the recent directive.
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