Case Law Details
Mathuradas Narandas & Sons Forwarders Ltd. Vs Central Board of Direct Taxes (Bombay High Court)
Introduction: In a significant ruling by the Bombay High Court concerning the Income Tax Return (ITR) filing delay, the court upheld CBDT’s decision not to condone a delay of over 16 years.
Background of the Case: The petitioner, Mathuradas Narandas & Sons Forwarders Ltd., challenged an order passed by CBDT under Section 119 (2)(b) of the Income Tax Act 1961. They sought leniency for the delay in filing their ITR, citing a previous Apex Court judgment. However, the court noted that the previous judgment’s context was different and not directly applicable here.
The Impugned Order and the Delay in Filing: The central issue revolved around the petitioner’s delay in filing the original return for AY-1998-1999, which sought to carry forward a loss of Rs.3,69,05,553/-. The original return was filed well beyond the deadline, which was 1st October 1998. They provided various reasons, including a search and seizure operation in their premises and subsequent audits.
CBDT’s Stance on Condonation of Delay: Highlighting the magnitude of the delay, the CBDT Circular 9/2015 clearly directs not to entertain any condonation application for claim of refund/loss beyond six years from the end of the assessment year. The petitioner’s application came 16 years after the end of the concerned assessment year, far exceeding this stipulation.
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