Padmalochanan Radhakrishnan Vs Union of India & Ors. (Calcutta High Court)
The Calcutta High Court examined the validity of orders dated 17.10.2025 and 30.10.2025 rejecting the petitioner’s claim for carry forward of loss on the ground that the income tax return was filed belatedly under Section 139(4) of the Income Tax Act, 1961. The petitioner submitted that the due date for filing the return for Assessment Year 2022-23 was 31 July 2022, but due to unavoidable circumstances, the return was filed with a delay of seven days. Because of the delay, the system did not permit carry forward of loss under Section 80 for Assessment Year 2023-24, and an intimation under Section 143(1) was issued accordingly.
The petitioner filed an application under Section 119(2)(b) seeking condonation of delay, but the application was rejected by relying on CBDT Circular No. 11 of 2024. The petitioner relied on the Madras High Court decision in Regan Powertech Private Ltd., which observed that delay should ordinarily be condoned unless there are mala fide reasons and that genuine hardship must be considered while exercising discretion under Section 119(2)(b).
The respondents argued that Section 80 does not permit carry forward of loss where the return is filed beyond Section 139(1), and that a belated return under Section 139(4) does not confer such benefit. They also relied on Circular No. 11 of 2024 regarding condonation applications.
