Case Law Details
Padmanabhan Viswanathan Vs ADIT (Kerala High Court)
Introduction: In a recent judgment, the Kerala High Court has directed the consideration of a condonation application for a significant delay of 234 days in an appeal against the rejection of a Foreign Tax Credit (FTC) claim. The case of Padmanabhan Viswanathan vs. ADIT (Assistant Director of Income Tax) raises questions about the timeline for filing appeals and the importance of condonation applications in tax disputes. This article provides a detailed analysis of the case and its implications.
Detailed Analysis: The petitioner, Padmanabhan Viswanathan, filed his income tax return for the assessment year 2021-22, declaring a total income of Rs. 5,87,59,725. He claimed a foreign tax credit of Rs. 1,79,29,048. However, the assessing authority disagreed with his claim for FTC and issued an intimation on 28.10.2022, under Section 143(1) of the Income Tax Act, 1961, demanding Rs. 2,28,80,370.
In response, the petitioner filed an application under Section 154 of the Income Tax Act, seeking rectification of the rejection of his FTC claim. Unfortunately, his rectification application was rejected on 11.1.2023, and a demand of Rs. 2,41,49,000 was raised.
The petitioner then decided to file an appeal under Section 246 of the Income Tax Act, along with an application for condonation of the substantial delay of 234 days in filing the appeal.
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