A Division bench of the Orissa High Court has remitted the delay condonation application of the petitioner back to the Principal Commissioner of Income Tax ( PCIT ) as the rejection of the condonation application stating that the deficiency in the return could not be complied and the Form 3CB and 3CD as prescribed for filing of the return was required to be uploaded by the Chartered Accountant which came to the notice of the petitioner, who was ill, was done in an arbitrary manner.
For the assessment year 2021-22 when the petitioner had submitted his return and the same was rejected on the ground of delay.
According to the petitioner, the return under the provisions of the statute could not be furnished because of delay made under various reasons which were beyond his control and unless the delay is condoned, the filing of return could not be made by the petitioner.
B. Panda appeared for the petitioner and S.C. Mohanty, Sr. Standing Counsel appeared for the Income Tax Department.
As such, the petitioner was under treatment on account of his frequent illness and finally kept under the treatment of Dr. P.G. Satpathy, a Medicine Specialist for the period commencing from 22.03.2022 to 01.04.2022 and medical certificate was issued in this connection which was produced for consideration.
The petitioner’s transactions for the assessment year 2021-22 was in fact coming under the limit of statutory audit as per Section 44AB of the Income Tax Act and unless the Auditor’s Report is accompanied in the IT return as prescribed, the filing of the return cannot be entertained.
Since there was delay in furnishing the return, which was beyond the control of the petitioner, the same was rejected without taking into consideration the fact that the relief has been granted by the apex Court for condonation of delay.
S.C. Mohanty, Senior Standing Counsel for the Income Tax Department vehemently contended that since there was delay on the part of the petitioner to furnish the return, therefore, the delay has not been condoned and the authority is well justified in passing the order impugned, which does not warrant interference of this Court at this stage.
The bench noted that, “ it appears that the petitioner is a regular assessee before the opposite party-department. Even if the filing of IT Return was within his knowledge and was deriving income from sale of high speed diesel and income from firm’s business etc., he was
required to file the IT Return disclosing the income at Rs.15,97,750/- and deposit of advance tax and all other dues of the department even if were paid to the credit of the IT Department and excess amount as per the statement prepared accrued the claim of refund at Rs.10,939/- and unless the return was entertained and delay is condoned considering the illness etc., it could not be possible to file IT Return in the relevant year.
It was further noted that, “when the petitioner submitted the IT return, the delay could have been condoned invoking Section 119 (2)(b) of the IT Act.”
On the whole the deficiency in the return could not be complied and the Form 3CB and 3CD as prescribed for filing of the return was required to be uploaded by the Chartered Accountant which came to the notice of the petitioner for the uploading on 31.03.2022. Therefore, the illness of the petitioner as well as uploading of statutory Audit Report made on 31.03.2022 by the concerned Chartered Accountant made the delay which was beyond the control of the petitioner, the bench noted.
The division bench thus observed that, “As such, the condonation delay application filed by the petitioner should not have been rejected straightway in a cryptic, confused and absurd manner without considering the orders passed by the apex Court as well as by this Court as mentioned above.”
It was thus held that the order so passed by the Principal CIT, the opposite party no.2 dated 01.08.2023 under Annexure-1 cannot be sustained in the eye of law and the same is liable to be quashed and is hereby quashed.
The Orissa High Court Bench of Justice Dr. B R Sarangi and Justice G Satapathy remitted the matter back to the file of PCIT for fresh consideration, in view of the above.
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