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.
The Madras High Court’s directive in Ravikumar Vs PCIT signifies a balance between upholding procedural integrity and mitigating undue hardships faced by taxpayers. By invoking Section 119(2)(b) of the Income Tax Act, the court ensures a fair opportunity for Ravikumar to claim his rightful TDS refund on MACT compensation.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The petitioner seeks a direction to the respondents to consider the belated filing of the return of income for assessment year 2019-20 so as to enable the consideration of a claim for refund thereafter. The petitioner met with a road accident on 07.10.2012. He filed M.C.O.P.No.358 of 2013 before the Motor Accident Claims Tribunal Special Sub Court No.2 at Salem claiming compensation in respect of such accident. The said petition was allowed partly by awarding the sum of Rs.71,31,000/- as compensation under Award dated 09.02.2015. He filed an appeal in C.M.A.No.1739 of 2016 on the file of this Court. By judgment dated 27.06.2018, the appeal filed by the petitioner was allowed and the compensation was enhanced to Rs.73,25,806/-. While paying such compensation, the Insurance Company deducted TDS to the extent of Rs.5,69,000/-. In order to claim refund of the above mentioned TDS, the petitioner filed the return of income for assessment year 2019-20. Since such return of income was being filed beyond the specified time limit, the petitioner submitted a representation dated 23.02.2023 for condonation of delay. Since such representation was not disposed of, the present writ petition was filed.
2. Dr. B. Ramaswamy, learned senior standing counsel, accepts notice for the respondent. Upon considering the averments in the affidavit, in all fairness, he submits that the representation would be duly considered and disposed of.
3. Upon examining the averments in the affidavit and on scrutinizing documents filed in support of the writ petition, this appears to be an appropriate case to consider an application under Section 119(2)(b) of the Income Tax Act, 1961 for condonation. Since the petitioner’s representation was issued on 23.02.2023, it is unclear as to whether such representation is available on the records of the Income Tax Department.
4. In these circumstances, W.P.No.7972 of 2024 is disposed of by permitting the petitioner to submit an application under Section 119(2)(b) of the Income Tax Act before the jurisdictional authority / first respondent within a maximum period of fifteen days from the date of receipt of a copy of this order. Upon receipt thereof, the first respondent is directed to consider and dispose of the same by taking note of the observations set out in this order within one month from the date of receipt of such representation. No costs.
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