ND’S Art World Private Limited Vs ACIT (OSD) (OT & WT) & Ors. (Bombay High Court)
An order requiring CBDT’s approval must be explicitly issued by CBDT or its members: Bombay HC
The Bombay High Court, in the case of ND’s Art World Private Limited Vs ACIT (OSD) (OT & WT) & Ors., addressed the validity of an order rejecting a taxpayer’s application for condonation of delay in filing an income tax return. The petitioner challenged the order dated January 24, 2024, contending that it lacked proper authority as it was issued by an Additional CIT with “approval of the competent authority” rather than by the Central Board of Direct Taxes (CBDT) or its members, as mandated under Section 119(2)(b) of the Income Tax Act, 1961.
The petitioner argued that orders under Section 119(2)(b) must be explicitly issued by the CBDT or its authorized members. Citing judicial precedents such as R.K. Madhani Prakash Engineers JV v. Union of India (2023) and Tata Autocomp Gotion Green Energy Solutions (P.) Ltd. v. CBDT (2024), the court emphasized the distinction between orders made by the CBDT and those issued with mere approval. The absence of clarity regarding the competent authority’s role in the present case undermined the validity of the impugned order.
