Short Overview: Where assessee was able to show bona fide reasons why the refund claim in respect of TDS could not be made in time, the delay in filing the said claim was condonable.

Assessee-company filed application to Chief Commissioner under section 119(2)(b) seeking condonation of delay in filing the refund claim of TDS submitting that the said refund was not claimed on time due to the inadvertent mistake of its Chartered Accountant. Chief Commissioner rejected such application on the ground that the plea of omission by the Chartered Accountant was not substantiated.

It is held that it was difficult to understand that what proof any assessee could have brought on record, to substantiate the inadvertence of its advisor. Beyond a plea that was raised by assessee, there could not necessarily be independent proof or material to establish that the auditor in fact acted without diligence. Further, assessee did not urge any other grounds such as illness of someone etc., which could reasonably have been substantiated by independent material. Accordingly, it could be said that assessee was able to show bona fide reasons why the refund claim could not be made in time. Further, it is well settled that refund provisions should be interpreted in a reasonable and practical manner and when warranted liberally in favour of the assessee.  Hence, the impugned order rejecting the assessee’s application under section 119(2)(b) was set aside and the application for condonation of delay was allowed.

Decision: In assessee’s favour