Case Law Details
Premier Exports International Vs ACIT (Kerala High Court)
In the case of Premier Exports International vs ACIT, the Kerala High Court addressed the rejection of a rectification application under Section 154 of the Income Tax Act. The court intervened due to failure to dispose of the application within the specified time.
Premier Exports International filed an application (Ext.P3) for rectification of an order (Ext.P2) under Section 154 of the Income Tax Act, which was rejected by Ext.P5. The rejection was based on the finding that no orders could be passed on rectification as per the provisions of sub-section (7) of Section 154.
The petitioner argued that the Central Board of Direct Taxes (CBDT) circular (Ext.P6) mandates the disposal of applications filed in time, regardless of not meeting the specified time under sub-section (7) of Section 154.
Considering the submissions, the Kerala High Court quashed the order (Ext.P5) and directed the 2nd respondent to pass fresh orders on the rectification application (Ext.P3), taking into account the provisions of the CBDT circular (Ext.P6).
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