The Bombay High Court has held that the Central Board of Direct Taxes (CBDT) is empowered to decide delay condonation applications and delegation to Additional CIT (OSD) was not proved.
The bench of Justice M. S. Sonak and Justice Jitendra Jain has observed that Section 119(2)(b) empowers the CBDT to decide condonation of delay applications. The CBDT, as a part of its functioning, may have allocated the work amongst its members. However, nothing was shown regarding any further allocation or delegation to the Additional CIT (OSD) (OT & WT).
The Petitioner/assessee has challenged the order, which dismissed the Petitioner’s application for condonation of a delay of around 10 months in filing the return of income for the assessment year 2020-2021.
The assessee submitted that the order has been made by the Additional Commissioner of IncomeTax (CIT) (OSD) (OT & WT) “with the approval of competent authority”. The power to consider and dispose of an application for condonation of delay is vested in the Central Board of Direct Taxes (CBDT) under the provisions of Section 119(2)(b) of the Income Tax Act, 1961. The order is neither by CBDT nor any of its members. There is no clarity about which competent authority has approved the making of this order. In any event, even if the CBDT or its members approve the order, it cannot be regarded as an order made by the CBDT or its members.
The court quashed the order and remand the matter to the CBDT or its duly allocated member to pass an order on the Petitioner’s application for condonation of delay.
Case Details
Case Title: ND’S Art World Private Limited Versus Additional Commissioner of
Income Tax (OSD) (OT & WT) & Ors.
Case No.: Writ Petition No.2930 Of 2024
Date: 28/01/2025
Counsel For Petitioner: Priyanka Jain
Counsel For Respondent: P. A. Narayanan
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