CBDT Circular Cannot Restrict S.119(2)(b) Condonation Power to Six Years

AP HC Ruling on Condonation Power for Delayed Refunds

The Andhra Pradesh High Court has ruled that the commendation power under Section 119(2)(b) of the Income Tax Act cannot be limited by the six-year restriction outlined in CBDT Circular No. 9/2015. This decision allows individuals to pursue delayed income tax refund claims without the fear of automatic rejection due to timing constraints.

The court's reasoning emphasizes that the power to condone delays is inherent and must be exercised liberally to ensure taxpayer rights and compliance with tax principles. The judgment advocates for an interpretation favoring the taxpayer, reflecting judicial sensitivity towards procedural adherence and the need for flexibility in evaluating refund claims.

Tax practitioners should note this significant relief granted to taxpayers, as it opens avenues for late refund applications. Careful documentation will remain vital to maximize success in claiming delayed refunds.