TRINITY WISDOM ACADEMY PRIVATE LIMITED vs. PRINCIPAL COMMISSIONER OF INCOME TAX DELHI 7 ANR & ANR.

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W.P.(C)/8076/2024HC DelhiDLHC01033647202429 November 2024Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE DR. JUSTICE SWARANA KANTA SHARMA2 pages
AI SummaryRemanded

What did the High Court hold?

The Delhi High Court, with the consent of both parties, set aside the impugned order dated 29.04.2024. The Court permitted the petitioner to make a fresh application before the competent officer. It was clarified that if the application is made within two weeks from the date of the order, the competent officer shall consider it on its merits, specifically taking into account CBDT Circular No. 17 of 2024 dated 18.11.2024. The Court did not decide the merits of the original application but facilitated its reconsideration under the new circular. The petition was disposed of, and pending applications were also disposed of.

What were the facts?

The petitioner, Trinity Wisdom Academy Private Limited, is challenging an order dated 29.04.2024 by the Principal Commissioner of Income Tax, Delhi 7. This order rejected the petitioner's application for condonation of delay in filing Form 10(IC) electronically. This form is required to avail the benefit of a special tax rate under Section 115BAA of the Income Tax Act, 1961, for Assessment Year (AY) 2020-21. The petitioner also seeks modification of an intimation dated 06.08.2021 issued under Section 143(1). AY 2020-21 was the first year Section 115BAA was operational, requiring timely filing of the application. A subsequent CBDT Circular No. 17 of 2024, dated 18.11.2024, empowered officers to consider such delayed applications.

What were the issues?

1. Whether the petitioner's application for condonation of delay in filing Form 10(IC) for AY 2020-21 should be considered, given the subsequent issuance of CBDT Circular No. 17 of 2024. Assessee's Contention: The petitioner argued that the delay in filing Form 10(IC) occurred before the issuance of Circular No. 17 of 2024, which provides a mechanism for condoning such delays. They sought to have their application considered in light of this new circular. Revenue's Contention: The Revenue, through its counsel, fairly conceded that the parties did not have the benefit of the aforementioned circular at the time of the impugned order. They agreed that the matter should be remanded to the concerned officer to consider the petitioner's application in light of the circular.

Which sections of the Income-tax Act were involved?

Section 115BAA,Section 139(1),Section 143(1),Section 119(2)(B)

AI-generated summary — verify with the full judgment below

$~49 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 8076/2024 & CM APPL. 33282/2024

TRINITY WISDOM ACADEMY PRIVATE LIMITED ...Petitioner Through: Mr. Gaurav Jain and Mr. Rahul Prabhakar, Advocates

versus

PRINCIPAL COMMISSIONER OF INCOME TAX DELHI 7 ANR & ANR.

.....Respondents Through: Mr. Puneet Rai, SSC with Mr. Ashvini Kumar, Mr. Rishabh Nangia, JSCs and Mr. Nikhil Jain and Advocate

CORAM:

HON'BLE MR. JUSTICE VIBHU BAKHRU

HON'BLE MS. JUSTICE SWARANA KANTA SHARMA

O R D E R %

29.11.2024 1. The petitioner has filed the present petition inter alia impugning an order dated 29.04.2024 passed by the concerned authority rejecting the petitioner’s application for condonation of delay in filing Form 10(IC) electronically for availing the benefit of a special rate of tax as provided under Section 115BAA of the Income Tax Act, 1961 (hereafter the Act) in respect of assessment year (AY) 2020-21. 2. The petitioner also seeks a consequent relief of modification of the intimation dated 06.08.2021 issued under Section 143(1) of the Act. The petitioner submits that AY 2020-21 was the first year of operation of Section 115BAA of the Act. Special rate of tax was available to certain assessees, subject to the assessee filing an application in a requisite manner, within the time as prescribed for filing of a return under Section 139(1) of the Act. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 04/12/2024 at 12:07:11

3.

The learned counsel for the petitioner submits that the Central Board of Direct Taxes (CBDT) has now issued a circular (being Circular No. 17 of 2024 dated 18.11.2024) under Section 119(2)(B) of the Act, empowering the concerned officers viz. Principal Commissioner of Income Tax/ Commissioner of Income Tax, Chief Commissioner of Income Tax and Director General of Income Tax for considering and dealing with application for condonation of delay in filing Form 10(IC). 4. Mr. Rai, the learned counsel appearing for the Revenue fairly submits that the parties did not have the benefit of the aforementioned circular which has been issued subsequently and the matter may be remanded to the concerned officer to consider the petitioner’s application in the light of the aforementioned circular. 5. The learned counsel appearing for the petitioner is agreeable to this course. 6. Consequently, with the consent of the parties, we set aside the impugned order dated 29.04.2024. We permit the petitioner to make an application before the competent officer. We further clarify that, if the application is made within a period of two weeks from date, the competent officer shall consider the same on merits including in the light of the circular No. 17 of 2024 dated 18.11.2024. 7. The present petition is disposed of. Pending application also stands disposed of.

VIBHU BAKHRU, J

SWARANA KANTA SHARMA, J NOVEMBER 29, 2024 ns

Click here to check corrigendum, if any This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 04/12/2024 at 12:07:11

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