Karnataka HC quashes CBDT rejection, Orders liberal approach in condoning delay for trust 

Perusing the medical certificate   placed on record, Court observed that the afflictions indicated in the said report only indicate normal afflictions like hypertension, ischemic heart disease, diabetes mellitus, hypothyroidism & Parkinson, there is nothing which is indicated in the said medical certificate that those afflictions were such that the petitioner was prevented from carrying out the necessary activities.

However, Court held that considering that the petitioner is 75 years & that by filing an application u/s 192(b), what the petitioner intends to achieve is only to place the returns & documents on record which would not in any manner adversely affect the interest in revenue, in fact the revenue would receive the tax due voluntarily paid by the petitioner.

Court ruled that Revenue would have to consider the documents which have been placed on record in accordance with law & determine the tax liability of the petitioner. Court opined that, these kind of matters the revenue is required to be more equitable & exercise the jurisdiction u/s 192(b) more liberally by condoning the delay where it can, so that the assessment could be completed in a proper manner in accordance with law, more so when the assessee has approached the authority to pay the tax.

Allowing the writ petition,  Court set aside the CBDT order.   Delay in the application u/s 192(b) allowed to be  condoned & the matter was remitted to CBDT  to consider the returns & documents filed by the petitioner in accordance with law.

Author’s views

It is not discernible from the order if the Petitioner was seeking to claim exemption u/s 11 in respect of the Trust or “approached the authority to pay the tax” & only to condone the delay in filing returns of income without making any such claim for exemption

FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT

The petitioner is before this Court seeking for the following reliefs;

a. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the Impugned Order in order F.No.197/42/2023-ITA-1 dated 06.06.2024 passed u/s 119(2)(b) of the Income Tax Act, 1961 and herein marked as Annexure-A.

b. And pass such other orders as this Hon’ble Court deems fit and proper in the interest of justice and equity.”

2. The grievance of the petitioner is that the application filed by the petitioner under Section 192(b) of the Income Tax Act 1961 has been dismissed by the respondent on the ground that the medical certificate which had been produced along with the said application did not specifically disclose that due to the affliction mentioned in the medical certificate, the petitioner was unable to file his returns within the timeframe. A copy of the medical certificate has been placed on record before this Court.

3. The afflictions indicated in the said report only indicate normal afflictions like hypertension, ischemic heart disease, diabetes mellitus, hypothyroidism and Parkinson, there is nothing which is indicated in the said medical certificate that those afflictions were such that the petitioner was prevented from carrying out the necessary activities.

4. Considering that the petitioner is 75 years and that by filing an application under Section 192(b), what the petitioner intends to achieve is only to place the returns and documents on record which would not in any manner adversely affect the interest in revenue, in fact the revenue would receive the tax due voluntarily paid by the petitioner.

5. The revenue would have to consider the documents which have been placed on record in accordance with law and determine the tax liability of the petitioner. I am of the considered opinion that, these kind of matters the revenue is required to be more equitable and exercise the jurisdiction under Section 192(b) more liberally by condoning the delay where it can, so that the assessment could be completed in a proper manner in accordance with law, more so when the assessee has approached the authority to pay the tax. As such, I pass the following;

ORDER

i. The writ petition is allowed.

ii. A certiorari is issued, the impugned order bearing F.No.197/42/2023-ITA-1 dated 06.06.2024 at Annexure-A is set aside.

iii. The application under Section 192(b) of the Income Tax Act 1961 is allowed delay is condoned. The matter is remitted to respondent to consider the returns and documents filed by the petitioner in accordance with law.