Santhana Krishnan Vs Commissioner of Income Tax (International Taxation) (Madras High Court)
The petitioner, a Non-Resident Indian residing in the United States, challenged the order dated 25 March 2025 issued by the Commissioner of Income Tax (International Taxation) under Section 119(2)(b) of the Income Tax Act, 1961. The petitioner had sold an immovable property during the Financial Year 2022–2023, deducted and remitted tax to the Income Tax Department but failed to file the return of income within the prescribed due date under Section 139. Due to this lapse, the petitioner became ineligible to claim a refund of ₹42,54,640/–. Subsequently, the petitioner filed an application on 27 June 2024 seeking condonation of delay under Section 119(2)(b) of the Act, along with relevant circulars.
The respondent rejected the condonation application relying on CBDT Circular No.11/2024 dated 1 October 2024, which outlined conditions for acceptance or rejection of such claims, including ensuring the assessee was prevented by a reasonable cause and suffered genuine hardship. The circular also empowered the authorities to direct the jurisdictional Assessing Officer to make necessary inquiries.
The Court observed that at the time of filing the condonation application, the prevailing CBDT Circular was No.9/2015 dated 9 June 2015. However, irrespective of whether Circular No.9/2015 or No.11/2024 applied, the Court held that the delay in filing the return should be condoned if the petitioner was otherwise eligible for refund. Referring to its earlier order dated 13 October 2025 in W.P. No.10812 of 2023, issued under similar circumstances, the Court allowed the writ petition.
