Khetivadi Utppan Bajar Samiti Veraval Committee Vs Chief Commissioner of Income Tax (Gujarat High Court)
Gujarat High Court held that delay in filing of return of income due to delayed communication of deduction of TDS is justifiable. Accordingly, delay in filing of return condoned and AO directed to process the same in accordance with law.
Facts- For the Assessment Year 2017–18, land belonging to the Petitioner was acquired on 11.08.2016 by the National Highways Authority of India (NHAI). Pursuant thereto, the Petitioner received compensation amounting to ₹10,11,60,371/-. From the said compensation, an amount of ₹1,01,16,037/- was deducted by the deduct or towards Tax Deducted at Source (TDS). The Petitioner contends that the said income was exempted u/s. 10(26AAB) of the Income Tax Act, 1961, and therefore, the deduction of TDS was unwarranted.
The Petitioner submits that, having been apprised of the TDS deduction only in December 2018, which was subsequent to the due date for filing the return of income, it was not feasible to file the return within the stipulated period. Accordingly, the Petitioner preferred an application u/s. 119(2)(b) of the Income Tax Act, 1961 on 23.03.2020, seeking condonation of delay in filing the return of income for Assessment Year 2017–18, with a view to claiming refund of the TDS amount.
