Jaspal Kaur and others V. Union of India and others

WP(C)/840/2023

AI Insights

The case involves Jaspal Kaur and others, who filed a writ petition challenging the rejection of their application for compounding by the Principal CCIT, Bhubaneswar. The rejection was based on the grounds that the application was filed beyond the permissible period. However, the petitioners argued that the limitation period should be extended due to the Supreme Court's orders related to the COVID-19 pandemic. The High Court of Orissa found that the Principal CCIT had not considered these modifications and thus set aside the impugned order, directing a fresh consideration of the application.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 817419 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 24-03-2023
• Assessment Year: misc
• Other Referred Cases: M/s. Kanungo Institute of Diabetes Specialties Pvt. Ltd., Bhubaneswar v. Principal Chief Commissioner of Income Tax, Bhubaneswar
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: TUSHAR KANTI SATAPATHY
• Assessee Lawyers: RUDRA PRASAD KAR
• Keywords: CBDT guidelines; Compounding application; Covid-19 pandemic; Limitation Period; Supreme Court Orders
• Section: 279(2)

Judgement Text

" Page 1 of 3 IN THE HIGH COURT OF ORISSA AT CUTTACK W.P.(C) No. 840 of 2023 Jaspal Kaur and others …. Petitioners Mr. Rudra Prasad Kar, Advocate -versus- Union of India and others …. Opposite Parties Mr. Tushar Kanti Satapathy, Senior Standing Counsel for Income Tax Department CORAM: THE CHIEF JUSTICE JUSTICE M.S. RAMAN Order No. ORDER 24.03.2023 03. 1. This writ petition is restored vide order passed today in RVWPET No.82 of 2023. 2. Notice. Mr. T.K. Satapathy, learned Senior Standing Counsel for the Department accepts notice. Extra copies of the present petition be served on him today itself. 3. The only ground on which the Petitioner’s application for compounding has been rejected by the Principal Chief Commissioner of Income Tax (CCIT), Bhubaneswar in the impugned order dated 11th November 2022 under Section 279 (2) of the Income Tax Act, 1961 (Act) is that the application for compounding was filed beyond 50 months from the date of filing of the complaint i.e., 20th September, 2017. 4. The impugned order notes that the restriction regarding limitation could be relaxed in deserving cases while the application Page 2 of 3 is filed beyond 12 months, but before 24 months from the end of the month in which the complaint was filed. What was perhaps not noted is that the said CBDT guidelines dated 14th June 2019 stood automatically further modified, as far as the period of limitation is concerned, by orders of the Supreme Court of India on 8th March 2021 and 23rd September 2021 in Miscellaneous Application No.665 of 2021 in SMW (C) No.3 of 2020 (In Re: Cognizance For Extension of Limitation) in the wake of the Covid-19 pandemic as well as the order of this Court dated 9th February, 2023 passed in W.P.(C) No.3678 of 2023 (M/s. Kanungo Institute of Diabetes Specialties Pvt. Ltd., Bhubaneswar v. Principal Chief Commissioner of Income Tax, Bhubaneswar). 5. It is possible that said orders of the Supreme Court were not known to the Petitioner as well as the Principal CCIT and therefore were not taken note of while deciding the application for compounding filed by the present Petitioner. 6. On the above short ground, the impugned order dated 11th November 2022 passed by the Principal CCIT is hereby set aside and the Petitioner’s application for compounding is directed to be considered once again by the Principal CCIT in accordance with law. The matter will now be placed before the Principal CCIT, Bhubaneswar on 18th April 2023, at 11 AM when the Petitioner will appear through an authorized representative. After hearing the Petitioner, an appropriate reasoned order on merits will be passed within a period of one month thereafter. The Court clarifies that it has not expressed any view on the merits of the matter. Page 3 of 3 7. The writ petition is disposed of in the above terms. Issue urgent certified copy of this order as per rules. (Dr. S. Muralidhar) Chief Justice (M.S. Raman) Judge S. Behera "