No HC relief for co over delayed I-T return

Date:



MUMBAI: The Delhi excessive court docket dismissed a writ petition filed by a know-how firm, searching for condonation of delay in submitting its income-tax return for FY20. The Central Board of Direct Taxes had refused to invoke its powers accorded to it below part 119 of the I-T Act to condone this delay — the HC discovered no justification to intervene with this view.
This order is being broadly mentioned amongst tax circles, together with I-T officers.A serious fallout of not submitting a well timed return is that carry-forward of losses, which is typi cally obtainable over the next eight-year interval is denied, as are a number of tax advantages. A govt official stated, this order will mitigate cases of taxpayers adopting a lax angle in complying with statutory provisions.
Sunil Agarwal, senior standing counsel for the I-T division and one of many advocates representing the matter, stated, “Genuine hardship is the cornerstone for exercise of this discretion by the CBDT. The taxpayer’s contentions such as the delay arose owing to the fall-out of Covid, that the delay was a one-time aberration or even of financial crisis were proved to be factually incorrect and found non-sustainable by the high court.”
Several taxpayers, who have been impacted by the autumn out of the pandemic, had discovered it tough to file their I-T returns and pay their dues. For FY20, the CBDT had prolonged the timeline for submitting the I-T returns to Feb 15, 2021 (for giant taxpayers who’re obligated to hold out a tax audit) and to Jan 10, 2021, for others. Yet, some taxpayers continued to hunt condonation for delays in submitting of the I-T return past the prolonged due date.
The HC noticed that authorities had taken varied details into consideration when the prayer for condonation was made by Lava International. The firm had as much as Feb 15, 2021, to file its I-T return, but though its financials have been signed on July 31, 2020, the I-T return was filed by it solely on March 30, 2021. This mirrored negligence. Second, it was famous that the corporate had filed belated I-T returns in a number of cases, the delay for the monetary ye ar 2019-20 was not an aberration. In response to a showcause discover the corporate attributed the delay to a monetary and money crunch. However, the monetary statements for the related interval confirmed a revenue of Rs 24.8 crore and a money stream of Rs 12.3 crore, which didn’t replicate any monetary hardship.
The HC famous that the “power of condonation under section 119(2) can be exercised to deal with extraordinary circumstances only, which would have led to delay in statutory compliance. The same cannot be exercised routinely”.


Nilesh Desai
Nilesh Desaihttps://www.TheNileshDesai.com
The Hindu Patrika is founded in 2016 by Mr. Nilesh Desai. This website is providing news and information mainly related to Hinduism. We appreciate if you send News, information or suggestion.

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