Case Law Details
Ravikumar Vs PCIT (Madras High Court)
The Madras High Court recently adjudicated on a crucial matter concerning the belated filing of Income Tax Returns (ITR) impacting Tax Deducted at Source (TDS) refunds related to Motor Accident Claims Tribunal (MACT) compensation.
Ravikumar, the petitioner, filed for compensation following a road accident in 2012. After succeeding in his claim before the Motor Accident Claims Tribunal, he sought an enhanced compensation through an appeal, which was granted by the High Court. However, the insurance company deducted TDS while disbursing the compensation, leading Ravikumar to file his ITR for the relevant assessment year. Due to the delay in filing, he submitted a representation for condonation of the delay.
The High Court, after hearing both parties, recognized the need for considering Ravikumar’s application under Section 119(2)(b) of the Income Tax Act. Despite the uncertainty surrounding the availability of Ravikumar’s representation in the Income Tax Department’s records, the court directed him to submit the application within fifteen days. Additionally, the court instructed the jurisdictional authority to expedite the consideration of Ravikumar’s application within one month of its receipt.
This judgment underscores the court’s inclination towards providing relief to taxpayers facing genuine hardships due to procedural delays. It sets a precedent for addressing similar cases where belated ITR filings hinder TDS refunds on compensation awarded by tribunals or courts.
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