Abhinaytosh Mahila Bal Vikash Samiti Business Charitable Trust vs. Central Board Of Direct Taxes

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WP/21635/2022HC Madhya Pradesh11 November 2022Bench: HON'BLE SHRI JUSTICE SHEEL NAGU3 pages
For Petitioner: Sapan Usrethe
AI SummaryRemanded

What did the High Court hold?

The High Court, in light of the CBDT circular dated July 19, 2022, which delegates the power of condoning delay beyond 365 days under Section 119(2) of the Income Tax Act to the Principal Chief Commissioner/Chief Commissioner of Income-Tax, extended liberty to the petitioner. The Court directed that the petitioner can approach the said authority invoking Section 119(2)(b) of the Income Tax Act. If the application is filed within one month from the date of this order, the concerned Authority is directed to decide the application for condonation of delay on its own merits and pass orders on the question of limitation as expeditiously as possible. The writ petition was disposed of with these directions. No specific finding was given on the merits of the original delay, as the matter was remanded for fresh consideration of the condonation application.

What were the facts?

The petitioner, Abhinaytosh Mahila Bal Vikash Samiti, a charitable trust, filed a writ petition before the High Court of Madhya Pradesh challenging an order dated January 22, 2021, passed by the Commissioner of Income Tax (Exemption), Bhopal. This order dismissed the petitioner's application for condonation of delay in filing an appeal, citing that the delay exceeded 365 days. The revenue, represented by the Central Board of Direct Taxes and other income tax authorities, was the respondent. The procedural history involves the dismissal of the condonation application by the CIT, leading to the present writ petition.

What were the issues?

1. Whether the petitioner's application for condonation of delay, dismissed by the Commissioner of Income Tax on the grounds of exceeding 365 days, can be reconsidered by the appropriate authority under Section 119(2)(b) of the Income Tax Act, 1961. Assessee's Contention: The petitioner, through its counsel, referred to a CBDT circular dated July 19, 2022, which indicated that the power to condone delay in preferring an appeal beyond 365 days, vested under Section 119(2) of the Income Tax Act, has been delegated to the Principal Chief Commissioner of Income-Tax/Chief Commissioner of Income-Tax. Revenue's Contention: The Revenue's counsel brought to the Court's attention a previous order in a similar writ petition (Writ Petition No. 11906 of 2021, Shri Namiyun Parshanvnath Jain Swetamber Manidhari Trust Vs. Central Board of Direct Taxes and Others) where the petitioner was granted liberty to approach the CBDT under Section 119(2)(b).

Which sections of the Income-tax Act were involved?

Section 119(2)(b),Section 119(2)

AI-generated summary — verify with the full judgment below

Before: HONBLE SHRI JUSTICE SHEEL NAGU & HONBLE SHRI JUSTICE VIRENDER SINGH

IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR BEFORE HON'BLE SHRI JUSTICE SHEEL NAGU & HON'BLE SHRI JUSTICE VIRENDER SINGH ON THE 11th OF NOVEMBER, 2022 WRIT PETITION No. 21635 of 2022 BETWEEN:- ABHINAYTOSH MAHILA BAL VIKASH SAMITI BUSINESS CHARITABLE TRUST THROUGH ITS PRESIDENT SHRI NILRATAN PATRA R/O PADMAKAR NAGAR SEWA HOSPITAL, MAKRONIA, DISTRICT SAGAR (MADHYA PRADESH) .....PETITIONER (BY SHRI SAPAN USRETHE - ADVOCATE ) AND 1. CENTRAL BOARD OF DIRECT TAXES THROUGH ITS CHAIRMAN, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, NEW DELHI-110001 (DELHI) 2. COMMISSIONER OF INCOME TAX-EXEMPTION, BHOPAL, 2ND FLOOR, METRO WALK BUILDING, BITTAN MARKET, BHOPAL (MADHYA PRADESH) 3. PR. CHIEF COMMISSIONER OF INCOME TAX, B H O P A L NEAR HOSHANGABAD ROAD, CENTRAL REVENUE BUILDING , OPPOSITE MAIDA MILL, CENTRAL REVENUE BUILDING, BHOPAL (MADHYA PRADESH) .....RESPONDENTS (BY SHRI SANJAY LAL - ADVOCATE ) This petition coming on for admission this day, JUSTICE SHEEL NAGU passed the following: ORDER The challenge herein is to the order by which the application for 1 Signed by: ASHISH KUMAR JAIN Signing time: 11/11/2022 5:38:55 PM Signature Not Verified (SHEEL NAGU) (VIRENDER SINGH) condonation of delay filed by the petitioner has been dismissed by C.I.T., Bhopal by order dated 22.01.2021 vide Annexure-P/1 on the ground of being barred by limitation beyond a period of 365 days. 2. Learned counsel for the Revenue has brought to the attention of this Court an order passed by this Court in Writ Petition No.11906 of 2021 (Shri Namiyun Parshanvnath Jain Swetamber Manidhari Trust Vs. Central Board of Direct Taxes and Others) decided on 16.06.2022, wherein in similar circumstances, the petitioner therein was extended liberty to approach the CBDT u/S 119(2)(b) of the Income Tax Act, 1961. 3. However, it is pointed out by learned counsel for the petitioner by referring to circular dated 19.07.2022 of CBDT, Government of India, that the power of condonation of delay in preferring an appeal beyond 365 days vested u/S 119(2) of the Income Tax Act has now been delegated to the Principal Chief Commissioner of Income-Tax/Chief Commissioner of Income-Tax vide Annexure-P/12. 4. In view of the above, this Court extends liberty to the petitioner to approach the Principal Chief Commissioner of Income-Tax/Chief Commissioner of Income-Tax as the case may be, invoking the provisions of Section 119(2)(b) of Income Tax Act and if the said Authority is approached by the petitioner within one month, then the said Authority shall decide the said application for condonation of delay on its own merits and pass orders on the question of limitation as expeditiously as possible. 5. With the aforesaid, present petition stands disposed of. 2 Signed by: ASHISH KUMAR JAIN Signing time: 11/11/2022 5:38:55 PM Signature Not Verified JUDGE JUDGE @shish

3 Signed by: ASHISH KUMAR JAIN Signing time: 11/11/2022 5:38:55 PM Signature Not Verified

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