Suresh Velu Ellathukalathil Vs PCIT (Kerala High Court)
In , the Kerala High Court dismissed a writ petition challenging an order rejecting an application filed under Section 119(2)(b) of the Income Tax Act for condonation of delay in filing income tax returns for AY 2018-19 to claim a refund.
The petitioner contended that the earlier CBDT Circular No. 9/2015 permitted condonation of delay up to six years and that the application was filed within that period. The petitioner argued that the subsequent circular reducing the limitation period from six years to five years could not take away the benefit allegedly available under the earlier circular. Reliance was also placed on a Madras High Court decision observing that failure of the Income Tax Department to issue notice under Section 148 warranted interference.
The Revenue opposed the plea by pointing out that the earlier circular had been superseded by a later circular issued on 01.10.2024, which reduced the limitation period to five years. Since the petitioner filed the condonation application on 15.03.2025, when the revised circular was already in force, the authority lacked competence to entertain the application.
The High Court accepted the Revenue’s contention. It held that the later circular superseded the earlier one and validly reduced the condonation period from six years to five years. The Court observed that powers under Section 119(2)(b) are confined strictly to the CBDT circulars issued from time to time, and the authority cannot travel beyond those limits.
