S. 119 : Central Board of Direct Taxes- Circular-Return of income -Condonation of delay-Jurisdictional error-Power vested in CBDT- Order passed by Dy. CIT (OSD) (OT & WT) is without jurisdiction- Quashed and remanded to CBDT. [S. 119(2)(b) , 139, Art. 226]
The petitioner filed an application under Section 119(2)(b) for condonation of a 10-month delay in filing its income tax return for AY 2020-21. The application was dismissed by an order dated 24.01.2024, issued by the Additional Commissioner of Income Tax (OSD) (OT & WT), stating that it was done with the approval of the competent authority. The petitioner challenged the order by filing the writ petition contending that, the power to condone delay under Section 119(2)(b) is vested exclusively in the Central Board of Direct Taxes (CBDT) or its members, and not in the Additional CIT. further it was contended that the COVID-19 pandemic caused the delay, which constituted sufficient cause, but this was not considered. The Bombay High Court held that the order was without jurisdiction, as the power under Section 119(2)(b) had not been exercised by the CBDT or its duly authorized members. Accordingly, the Court quashed and set aside the order dated 24.01.2024, and remanded the matter to the CBDT or its designated member for fresh adjudication. (WP No. 2030 of 2024 dt. 28-1-2025) (AY. 2020-21)
ND’s Art World Private Limited v. Add.CIT (OSD) (Bom)(HC) www.itatonline .org
[Coram : Hon’ble Shri Justice M. S. Sonak & Hon’ble Shri Justice Jitendra Jain]