Case Law Details
Industria Chimica Adriatica Ica Vs Union of India & Ors (Delhi High Court)
Introduction: In a recent ruling, the Delhi High Court intervened in the case of Industria Chimica Adriatica Ica, directing the Principal Chief Commissioner of Income Tax (PCCIT) to make a decision on the application for condonation of delay in filing the Income Tax Return (ITR) for the Assessment Year 2017-18. The petitioner sought relief, citing a Technology Transfer Agreement (TTA) and claiming entitlement to file the return beyond the stipulated period.
Detailed Analysis: Industria Chimica Adriatica Ica executed a Technology Transfer Agreement on 28th April 2016, transferring technology to ICA Pidilite Private Limited (ICA-PIL). The petitioner refrained from filing the return for the Assessment Year 2017-18, believing that tax had already been deducted during the remittance received from ICA-PIL pursuant to the TTA.
The petitioner’s counsel referred to Circular No.9/2015 dated 09th June 2015 and Circular No. 07/2023 dated 31st May 2023, issued by the Central Board of Direct Taxes (CBDT). These circulars specify that applications for condonation of delay will not be entertained beyond six years from the end of the Assessment Year in question. The petitioner asserted that their case fell within the prescribed limitation of six years from the end of the relevant Assessment Year, as outlined in Circular No.9/201.
The application for condonation of delay was submitted on 29th June 2023, and the petitioner contends that, to date, no action has been taken by the Respondent No.2-PCCIT. Seeking resolution, the petitioner approached the Delhi High Court, leading to the recent directive.
Conclusion: The Delhi High Court, acknowledging the petitioner’s claim within the specified limitation period, has directed the Respondent No.2-PCCIT to expedite the decision on the application for condonation of delay. The court’s intervention ensures a timely resolution and emphasizes adherence to the provisions outlined in Circular No.9/2015 and Circular No. 07/2023. This development highlights the significance of legal timelines in the context of income tax return filings and the obligation of authorities to address applications promptly.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. Present writ petition has been filed seeking issuance of directions to the Respondents No. 2 and 3 to allow the Petitioner to file the return of income for the Assessment Year 2017-18 and to condone the delay in its filing.
2. Learned counsel for the Petitioner states that the Petitioner had executed a Technology Transfer Agreement (‘TTA’) dated 28th April, 2016 for assignment of technology from the Petitioner to ICA Pidilite Private Limited (‘ICA-PIL’). He further states that the Petitioner did not file return of income for the Assessment Year 2017-18 under the impression that tax had been deducted at the time of remittance received from ICA-PIL pursuant to the TTA.
3. Learned counsel for the Petitioner places reliance upon the Circular No.9/2015 dated 09th June 2015, as well as Circular No. 07/2023 dated 31st May 2023 issued by the Central Board of Direct Taxes (‘CBDT’), which state that application for condonation of delay shall not be entertained beyond six years from the end of the Assessment Year for which such application/claim is made. He states that the case of the Petitioner is within limitation as prescribed in the Circular No.9/2015, i.e., within six years from the end of the Assessment Year for which such application is made.
4. Learned counsel for the Petitioner states that the Petitioner duly filed the application for condonation of delay dated 29th June, 2023 on 11th July, 2023 for filing the Income Tax Return for the Assessment Year 2017-18 for claiming refund under Section 119(2)(b) of the Income Tax Act, 1961 with the Respondent No.2-PCCIT. However, no action has been taken on the aforesaid application till date.
5. Issue notice. Mr. Abhishek Yadav and Mr. Sunil Agarwal, learned counsel for the Respondents, accept notice. They pray that twelve weeks’ time be given to the Respondent No.2 to decide the Petitioner’s application.
6. Keeping in view the aforesaid, the present writ petition is disposed of with a direction to the Respondent 2-PCCIT to decide the Petitioner’s application for condonation of delay dated 29th June, 2023 filed on 11th July, 2023 by way of a reasoned order in accordance with law within twelve weeks. The rights and contentions of all the parties are left open.
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