MOHD. ARSHAD KHAN V. UNION OF INDIA AND ANOTHER

WTAX/982/2022

AI Insights

The case involves Mohd. Arshad Khan, the petitioner, who filed a writ petition against the Union of India and another respondent concerning the Income Tax Department. The petitioner had filed his income tax return for the Assessment Year 2016-17, claiming a refund, which was initially marked as defective. Despite later attempts to rectify this by submitting an application under Section 139(9) of the Income Tax Act, 1961, the petitioner's return was not treated as valid, and the refund was not processed. The court was approached after the petitioner's grievances were not adequately addressed by the Income Tax Department, leading to a delay in the refund process.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 676250 (HC-ALLAHABAD)
• Appeal Type: Others
• Pronouncement Date: 01-08-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: A S G I
• Assessee Lawyers: FIRDOS AHMAD; MAHESH KUMAR
• Keywords: Condonation of delay; Defective return; Income Tax Return; Refund
• Section: 119; 119(2)(b); 139(9)

Judgement Text

"Court No. - 3 Case :- WRIT TAX No. - 982 of 2022 Petitioner :- Mohd. Arshad Khan Respondent :- Union Of India And Another Counsel for Petitioner :- Firdos Ahmad,Mahesh Kumar Counsel for Respondent :- A.S.G.I. Hon'ble Surya Prakash Kesarwani,J. Hon'ble Jayant Banerji,J. Heard Sri Firdos Ahmad, learned counsel for the petitioner and Sri Garurav Mahajan, learned Senior Standing Counsel for respondent - Income Tax Department. On 25.07.2022, this court passed the following order: \"Heard learned counsel for the petitioner and Sri Gaurav Mahajan, learned counsel for the respondent No.2. Grievance of the petitioner is that he filed his return of income for the Assessment Year 2016-17 claiming refund of Rs.38,543/- but his return was marked as defective about which he came to know much later. Therefore, he submitted an application for treating his return as a valid return. Learned counsel for the petitioner submits that on the complaint made on Grievance Cell it was intimated that his return was invalid. Therefore, he may move an application under Section 139(9) of the Income Tax Act, 1961 before the jurisdictional authority. However, the petitioner has filed the present writ petition. Sri Gaurav Mahajan, learned counsel for the Income Tax Department prays or and is granted a week's time to obtain instructions as to which authority and under which provision, the petitioner may approach for redressal of his grievance, i.e. for for validating his income tax return for the Assessment Year, 2016-17 and to get the refund. Put up as a fresh case before the appropriate bench on 01.08.2022.\" Today, Sri Mahajan, learned Senior Standing Counsel has produced before us a copy of the written instruction dated 30.07.2022 given by the Office of Principal Commissioner of Income Tax, Gorakhpur through the Income Tax Officer (Hq/Admn.), which is kept on record. The aforesaid instruction reads as under: \"Kind reference is invited to your letter dated 28.07.2022 on the subject cited above. 2. In the context of information desired by the Hon'ble High Court vide its Order dated 25.07.2022 in the case of above mentioned assessee, it is being submitted that condonation of delay in filing the Income Tax Return is being governed under section 119/119 2(b) of the I.T. Act 1961 (copy enclosed). Subsequently, the CBDT vide its Circular No. 09/2015 circulated vide its office letter F.No. 312/22/2015-OT dated 09.06.2015 has also prescribed competent authority in terms of monitory limit as well as necessary instruction to subordinate authorities while considering the application of condonation of delay in filing refund claim and claim of carry forward losses under section 119 (2)(b) (copy enclosed). 3. In this regard, it is being also intimated that the assessee named Mohd. Arshad Khan has filed his application for condonation of delay on dated 25.04.2022 and as per point no.5 of the Circular No.09/2015, his application has been forwarded to the Joint Commissioner of Income Tax, Range- 1, Gorakhpur to submit the requisite report i.e. income loss declared and or refund claimed is correct and genuine and also that the case is of genuine hardship on merits. Further, the assessee has filed his application for condonation of delay on dated 25.04.2022 & as per point no. 3 of the above mentioned circular, his application may be disposed of within the period upto October 2022 (as far as possible, within the period of six month from the end of the month in which application is received by competent authority ). 4. Therefore, keeping in view the facts mentioned supra, I have hen directed to request you to kindly take necessary action in order to furnish the information desired by the Hon'ble High Court Allahabad. Further, I have also been directed enclose herewith all the relevant documents as stated above in respect of the said case for your kind perusal and further necessary action.\" Prima facie, the approach of the respondents even in dealing with petty matters like the present one, appears to be totally arbitrary and whimsical. The petitioner is running from pillar to post to get a refund of Rs.38,543/- relating to Assessment Year 2016-17 and instead of disposing of his application for treating the return as valid, the respondents are keeping the matter pending. We hope and trust that the respondent No.2/ The Principal Commissioner of Income Tax Gorakhpur shall look into the matter and shall ensure that grievance of the petitioner is redressed by passing an appropriate order in accordance with law within two weeks from today. With the aforesaid directions, the writ petition is disposed of. Order Date :- 1.8.2022 NLY Digitally signed by NAND LAL YADAV Date: 2022.08.02 10:20:38 IST Reason: Location: High Court of Judicature at Allahabad "