The application for condonation of delay of application for refund is rejected by the Commissioner. On writ the  assessee’s contended that the assessee had filed the revised return based on Form 16A, which showed the TDS on rental income, and that he had declared a higher loss in the revised return. He also contended that the Circular dated 30.10.2003, which was applicable to his case, had increased the limit of the refund amount from Rs.1,00,000 to Rs.5,00,000, and had relaxed/modified the conditions stipulated in the earlier circular which the revenue purportedly made a reference to, laying restrictive conditions on such subsequent claim for refund/losses. He contended that his claim was for a refund of TDS only, and not for any additional income and that he had filed the application for condonation of delay in good faith. The revenue contended  that the assessee’s claim was supplementary, as he had filed the revised return after the original return had been processed, and that he had not disclosed the rental income or the TDS in the original return. Thus rejection is valid. Further, the revenue relying on the Circular dated 12.10.1993, (which laid down the conditions for condoning the delay in filing the return and granting refund) rejected the application for condonation. The assessee contended that the revenue failed to draw any reference to the circular dated 30.10.2003 which was effective and in force on the given day when the impugned order was passed.The Hon’ble High Court  allowed the writ petition filed by the assessee, who sought condonation of delay in filing a revised return for the assessment year 2001-02, claiming refund of tax deducted at source (TDS) on rental income. The court held that the revenue authorities had failed to consider the Instruction No.12 of 2003, dated 30.10.2003, which had relaxed the conditions for granting refunds in such cases. The court also held that the assessee had not made any additional income while filing the revised return and that his claim was not supplementary in nature as per the said Instruction given that the refund claim was based on Form 16A for TDS on rental income, which was part of the original scope of income reporting.  Directed to refund the tax deducted at source. (AY. 2001-02)