DINAKAR ULLAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The petitioner, a civil contractor assessed to income-tax, filed a belated return of income on September 8, 1997, for the assessment year 1995-96 declaring income of Rs. 50,240 and claiming refund of Rs. 2,41,505 being tax deducted at source, though March 31, 1997, was the last date for filing the belated return under Section 139(4) of the Income-tax Act, 1961 (for short "the Act"). The delay of five months and seven days in filing the belated return was sought to be condoned by an application filed on September 21, 1998, invoking Section 119(2)(b) of the Act. In the first instance, the rejection of the petitioner's application to condone the delay, by order dated January 8, 2007, of the Central Board of Direct Taxes for short the "Board", when called in question in W. P. No. 15441 of 2007, a learned single judge by order dated January 28, 2008 annexure D, quashed the order and remitted the proceeding for consideration afresh.

(2.) On remand, the respondent, exercising jurisdiction invested in him under Instruction No. 13 of 2006 dated December 22, 2006, in respect of claims up to Rs. 10,00,000, coupled with the direction contained in the letter dated March 28, 2008 of the Board, accepted the cause shown for the delay in filing the belated return, but denied interest on the refund amount, in view of the condition set out in Circular No. 670 dated October 26, 1993 see [1993] 204 ITR (St.) 154, read with Instruction No. 13 of 2006 dated December 22, 2006, by order dated May 15, 2008 annexure A. Hence, this writ petition.

(3.) The petition is not opposed by filing statement of objections.