Delhi High Court: Income Tax Refund Cannot Be Denied To Taxpayer For Discrepancy In Form 26AS Filed

The Delhi High Court in the case Hari Kishan Sharma vs.Govt of NCT of Delhi observed that tax was duly deducted by the Land Acquisition Collector but was not disclosed for some reasons and hence the credit was not reflected in Form 26AS.

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The court in the case held that the assessee or petitioner cannot be penalized for the mere reason that the Form 26AS suffered from a discrepancy.

While condoning the delay under section 119 of the Income tax Act, the High Court quashed an order, by which the Revenue Department had rejected the Assessee's application for submitting a revised return for the relevant Assessment Year, AY.

The High Court in the case directed the Department to take on board the revised return to be filed by the Assessee.

The section 119(2)(b) of the Income tax Act allows condonation of delays in filing returns, whereby the CBDT authorizes authorities to accept claims post expiry, with specific monetary limits.

The High Court while referring to section 237 of the Income Tax Act pointed out assessee is entitled to place its case before the AO by providing all material particulars, so that a prayer for refund may be processed.