Skystar Clearing & Forwarding Pvt Ltd Vs PCIT (Bombay High Court)
Bombay High Court has intervened in a case involving a significant delay in the filing of income tax returns (ITRs), conditionally setting aside an order by the Principal Commissioner of Income Tax (PCIT) that had refused to condone the delay. The court’s decision, delivered in the matter of Skystar Clearing & Forwarding Pvt Ltd Vs PCIT, acknowledges the financial difficulties faced by the petitioner company and allows the belated submission, subject to a key undertaking regarding potential refunds.
The petitioner, Skystar Clearing & Forwarding Pvt Ltd, approached the High Court challenging the PCIT’s order dated February 28, 2023. This order, issued under the powers granted by Section 119(2)(b) of the Income Tax Act, 1961, had rejected the company’s application for condonation of delay in filing its income tax returns for the Assessment Years (AY) 2017-18 and 2018-19. The delay, in this instance, spanned close to five years from the original due dates for filing the returns for these assessment years.
Appearing for the petitioner, counsel argued that the substantial delay in question was a consequence of “genuine hardship.” The court was informed that the petitioner company’s financial health had deteriorated, and its business operations were significantly impacted, particularly exacerbated by the economic disruptions caused by the Covid-19 pandemic. This, it was contended, contributed substantially to the inability to address the tax compliance matters promptly.
