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M/s. Beach Minerals Company Pvt. Ltd., Chennai, Rep. by Authorised Signatory v/s Union of India, Ministry of Finance, Rep. by the Secretary, Government of India, New Delhi & Others


Company & Directors' Information:- BEACH MINERALS COMPANY PRIVATE LIMITED [Active] CIN = U74999TN2003PTC051726

Company & Directors' Information:- S. N. S. (MINERALS) LIMITED. [Active] CIN = U51909WB1969PLC218838

Company & Directors' Information:- S. N. S. (MINERALS) LIMITED. [Active] CIN = U51909DL1969PLC005009

Company & Directors' Information:- P K P MINERALS PRIVATE LIMITED [Active] CIN = U14102TZ2005PTC011620

Company & Directors' Information:- S & S MINERALS PRIVATE LIMITED [Active] CIN = U14299TN1991PTC020474

Company & Directors' Information:- K & K MINERALS PRIVATE LIMITED [Active] CIN = U13209WB2004PTC098046

Company & Directors' Information:- M P MINERALS PRIVATE LIMITED [Active] CIN = U15543MP1992PTC018811

Company & Directors' Information:- UNION FINANCE LIMITED [Strike Off] CIN = U65910GJ1994PLC023717

Company & Directors' Information:- V S A MINERALS PRIVATE LIMITED [Strike Off] CIN = U14200TG2012PTC083339

Company & Directors' Information:- J AND J MINERALS PRIVATE LIMITED [Active] CIN = U15543KL1996PTC010847

Company & Directors' Information:- N S P MINERALS PRIVATE LIMITED [Active] CIN = U55101DL2008PTC177401

Company & Directors' Information:- R M MINERALS PRIVATE LIMITED [Active] CIN = U24119DL1997PTC085775

Company & Directors' Information:- B L A MINERALS PRIVATE LIMITED [Active] CIN = U10102WB2001PTC094005

Company & Directors' Information:- J R MINERALS LIMITED [Active] CIN = U74899DL1988PLC032158

Company & Directors' Information:- R S MINERALS PRIVATE LIMITED [Active] CIN = U14219WB1999PTC088998

Company & Directors' Information:- S D MINERALS PRIVATE LIMITED [Active] CIN = U26914KA2006PTC109640

Company & Directors' Information:- S D MINERALS PRIVATE LIMITED [Active] CIN = U26914GJ2006PTC049513

Company & Directors' Information:- M J M MINERALS PRIVATE LIMITED [Active] CIN = U13209WB2005PTC101576

Company & Directors' Information:- S Y MINERALS PRIVATE LIMITED [Active] CIN = U14200TG2009PTC062535

Company & Directors' Information:- N G MINERALS PVT LTD [Strike Off] CIN = U14200WB2006PTC108257

Company & Directors' Information:- K B MINERALS PRIVATE LIMITED [Active] CIN = U14101RJ2007PTC023845

Company & Directors' Information:- R S G MINERALS PRIVATE LIMITED [Strike Off] CIN = U14200TN2013PTC090971

Company & Directors' Information:- AMP MINERALS PRIVATE LIMITED [Active] CIN = U14290DL2019PTC352602

Company & Directors' Information:- V S MINERALS PRIVATE LIMITED [Active] CIN = U10100WB2009PTC135549

Company & Directors' Information:- N M MINERALS INDIA PRIVATE LIMITED [Active] CIN = U15543KL1999PTC013429

Company & Directors' Information:- S M MINERALS PRIVATE LIMITED [Active] CIN = U13100OR2009PTC010663

Company & Directors' Information:- G. J. MINERALS PRIVATE LIMITED [Active] CIN = U26990RJ2019PTC065080

Company & Directors' Information:- S B MINERALS PVT LTD [Strike Off] CIN = U22130WB1995PTC069369

Company & Directors' Information:- Y AND M MINERALS (INDIA) PRIVATE LIMITED [Active] CIN = U26999MH2006PTC161368

Company & Directors' Information:- N. A. MINERALS PRIVATE LIMITED [Strike Off] CIN = U13100CT2010PTC021730

Company & Directors' Information:- S L K MINERALS PRIVATE LIMITED [Active] CIN = U27109HR2020PTC087651

Company & Directors' Information:- G S MINERALS INDIA LIMITED [Active] CIN = U14292TG2009PLC064614

Company & Directors' Information:- P N MINERALS PRIVATE LIMITED [Strike Off] CIN = U15500JH2013PTC001544

Company & Directors' Information:- MINERALS & MINERALS LIMITED [Active] CIN = U26990JH1970PLC000875

Company & Directors' Information:- K M MINERALS PVT LTD [Strike Off] CIN = U13100WB1991PTC051010

Company & Directors' Information:- R S A MINERALS PRIVATE LIMITED [Strike Off] CIN = U13204DL2010PTC207421

Company & Directors' Information:- V J MINERALS PVT LTD [Strike Off] CIN = U24299GJ1980PTC003822

Company & Directors' Information:- MINERALS CORPN OF INDIA PVT LTD [Strike Off] CIN = U74999MH1949PTC006914

Company & Directors' Information:- CHENNAI FINANCE PRIVATE LIMITED [Strike Off] CIN = U65191TN1995PTC030934

Company & Directors' Information:- NEW INDIA FINANCE LTD. [Strike Off] CIN = U65999WB1991PLC051652

Company & Directors' Information:- V P S MINERALS PRIVATE LIMITED [Active] CIN = U51909DL2012PTC241484

Company & Directors' Information:- G V P R MINERALS PRIVATE LIMITED [Active] CIN = U14109TG2002PTC038702

Company & Directors' Information:- P S MINERALS PRIVATE LIMITED [Strike Off] CIN = U13203DL2010PTC207360

Company & Directors' Information:- THE MINERALS CORPORATION LIMITED [Dissolved] CIN = U99999MH1952PLC010592

Company & Directors' Information:- S K MINERALS PVT LTD [Active] CIN = U14109MH1982PTC028201

Company & Directors' Information:- S R S K MINERALS PRIVATE LIMITED [Under Process of Striking Off] CIN = U14200RJ2013PTC043238

Company & Directors' Information:- M R N MINERALS PRIVATE LIMITED [Strike Off] CIN = U13203TG2014PTC096104

Company & Directors' Information:- CHENNAI FINANCE CO PRIVATE LIMITED [Under Process of Striking Off] CIN = U65991TN1981PTC009023

Company & Directors' Information:- A G B MINERALS PRIVATE LIMITED [Strike Off] CIN = U10300DL2008PTC177455

Company & Directors' Information:- L N MINERALS PRIVATE LIMITED [Converted to LLP and Dissolved] CIN = U10300DL2008PTC177554

Company & Directors' Information:- A B G MINERALS PRIVATE LIMITED [Strike Off] CIN = U13209DL2008PTC177818

Company & Directors' Information:- B G N MINERALS PRIVATE LIMITED [Under Process of Striking Off] CIN = U10300AP2013PTC090061

Company & Directors' Information:- J & H MINERALS PRIVATE LIMITED [Active] CIN = U14200GJ2012PTC068497

Company & Directors' Information:- NEW K K FINANCE PRIVATE LIMITED [Strike Off] CIN = U65921UP1974PTC003887

Company & Directors' Information:- A G AND M MINERALS PVT LTD [Strike Off] CIN = U13209AP1986PTC006090

Company & Directors' Information:- K AND T MINERALS PRIVATE LIMITED [Strike Off] CIN = U14108TG2005PTC045901

Company & Directors' Information:- S. A. MINERALS PRIVATE LIMITED [Strike Off] CIN = U13209TG2006PTC050861

Company & Directors' Information:- CHENNAI MINERALS PRIVATE LIMITED [Strike Off] CIN = U29240TN2008PTC066387

Company & Directors' Information:- A. T. MINERALS PRIVATE LIMITED [Strike Off] CIN = U13203CT2007PTC020303

    Writ Petition Nos. 39208 & 39209 of 2015 & W.M.P. Nos. 1,2 & 2 of 2015

    Decided On, 31 January 2020

    At, High Court of Judicature at Madras

    By, THE HONOURABLE MR. JUSTICE C. SARAVANAN

    For the Petitioner: A.S. Sriraman, Advocate. For the Respondents: D. Prabhu Mukunth, Arunkumar, Jr. Standing Counsel for M/s. Hema Muralikrishnan, Standing Counsel.



Judgment Text


(Prayer in W.P.No.39208 of 2015: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorarified Mandamus to call for the records of the 2nd respondent to quash the impugned order in F.No.200/40/210/ITA-1 dated 09.10.2015 relating to the Assessment Year 2008-09 and consequently direct the 5th respondent to accept the return of income filed for the said Assessment Year as valid return of income within the scope of Section 139(1)of the Act.

In W.P.No.39209 of 2015: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorarified Mandamus to call for the records of the 2nd respondent to quash the impugned order in F.No.200/40/210/ITA-1 dated 09.10.2015 relating to the Assessment Year 2009-10 and consequently direct the 5th respondent to accept the return of income filed for the said Assessment Year as valid return of income within the scope of Section 139(1)of the Act.)

Common Order:

1. Heard the learned counsel for the petitioner and the respondents. By this common order, both the writ petitions are being disposed.

2. The petitioner is aggrieved by the impugned order dated 9.10.2015 passed by the 2nd respondent Central Board of Direct Taxes under Section 119(2)(b) of the Income Tax Act, 1961.

3. By the impugned order, the 2nd respondent has declined to condone the delay in filing returns under Section 139 of the Income Tax Act, 1961 as a result of which, the petitioner claimed for the benefit of deduction under Section 10 B of the Income Tax Act, 1961 for the assessment year 2008-09 and the assessment year 2009-10 stands finally disallowed.

4. The petitioner had filed returns for the respective assessment years belatedly on 20.2.2009 and on 20.11.2009. It is the contention of the petitioner that it is a 100% Export Oriented Unit and the accounts prepared for the purpose of filing returns were hacked in computer system and corrupted and therefore the Income Tax Returns were filed after a delay of 143 days for the assessment year 2008-09 and a delay of 50 days for the assessment year 2009-10 on 30.09.2008 and on 13.09.2009.

5. It is submitted that the marginal delay in filing the returns for the respective assessment year was not wilful which has resulted in denial of a legitimate benefit available to a 10o% Export Oriented Unit under Section 10B of the Income Tax Act, 1961.

6. It is submitted that by not filing the returns in time, the petitioner did not gain any advantage. On the other hand, the delay in filing the return has resulted in denial of the benefit of deduction under Section 10B of the Income Tax Act, 1961 on the Assessment Order.

7. It is further submitted that the 2nd respondent ought to have been liberal and condoned the delay under Section 119 (2) (b) of the Income Tax Act, 1961 as legitimate export incentive that are otherwise available to it stands denied.

8. It is submitted on behalf of the petitioner that the petitioner relied on the advice of the Chartered Accountant right from the inception and considering the volume and nature of transactions and since audited their data could not be retrieved in time, a delay occurred in filing the returns in time.

9. It was further stated that the petitioner had filed the returns for the subsequent financial years in time. By not filing returns for the two years in time, the petitioner did not gain any advantage. It was further stated that the petitioner was not in the habit of filing returns belatedly and the delay arose on account of corruption of data in the computer and illness of its Managing Director who suffered a health setback.

10. It was further submitted that the allegation in the show cause notice the petitioner had not paid MAT till the date of audit was incorrect as MAT was paid before November 2009 itself.

11. He submits that the lapses resulting in filing of the returns in time for the two assessment years in question are liable to be condoned. It is further submitted that the Chartered Accountant committed mistake in not preparing the returns in time though the accounts were audited.

12. The learned counsel for the petitioner submitted that the delay in filing the returns ought to have been condoned on humanitarian grounds as well as the company functions through its officers and since the petitioner’s Managing Director was indisposed at the time coupled with the fact that the Chartered Accountant services also were terminated. It is therefore submitted that the 2nd respondent ought to have liberally exercised the power vested with it while passing the impugned order.

13. Defending the impugned order, the learned counsel for the respondents submits that the impugned order is well reasoned and require no interference. It is further submitted that the petitioner had deliberately delayed the filing of the returns and has wrongly stated that the accounts were hacked without any direct proof substantially the same.

14. I have considered the arguments advanced on behalf of the petitioner and the respondents.

15. The petitioner had filed a petition under Section 119 (2)(b) of the Income Tax Act, 1961 before the 2nd respondent with the request to condone the delay in filing the returns under Section 139 of the Income Tax Act, 1961.

16. The petitioner was thereafter issued with a notice by the 2nd respondent on 18.9.2015 to show cause as to why the said application filed by the petitioner should not be rejected as during the course of the audit on 23.3.2010 it was noticed that the book profit of the petitioner company was Rs.20.134 crores whereas, tax due as per MAT provisions was not found to be paid till that date.

17. Similarly, for the assessment year 2008-09, also the petitioner had not paid the tax due on the book profit and it is for this reason the petitioner had failed to file the return of income in time.

18. The petitioner replied to the above notice vide reply dated 21.9.2015 wherein it was stated that right from the assessment years 2004- 05 upto 2007-08, the petitioner had filed the returns in time and only for the 2 years in question there was a marginal delay of little over 3 months and 50 days respectively in filing the returns.

19. To claim the benefit of Section 10 B of the Income Tax Act, 1961, an assessee is required to file the returns by the due date prescribed under Section 139 of the Income Tax Act, 1961. In this case, the last date for filing the return fell on 30.9.2008 and 30.9.2009 respectively. However, the returns were filed by the petitioner belatedly on 7.1.2009 and 20.11.2009. By filing the returns belatedly, the petitioner did not gain anything. On the contrary, the petitioner risked losing the benefit of deduction under Section 10 B of the Income Tax Act, 1961.

20. An assessing officer has no powers to condone the delay in filing returns under Section 139 (1) of the Income Tax Act, 1961 for allowing deduction under Section 10 B of the Income Tax Act, 1961.

21. Therefore, mandatory it was for the petitioner to have filed the returns in time to claim deduction under Section 10B of the Act. Only the 2nd respondent has been vested with the powers to grant relaxation, if strict application of any provisions of the Income Tax Act, 1961 results in denial of any legitimate benefit which may otherwise be available to an assessee.

22. It is for this very purpose, the 2nd respondent has been given powers to mitigate the hardship to assessees. Thus, the 2nd respondent may therefore by a general or a special order authorise any income tax authorities ( other than Commissioner (Appeals)) to admit an application for claim for any exemption, deduction, refund or any other relief under the Act after the expiry of the period specified by or under the Act on application.

23. The claim for deduction under Section 10 B is dependent on the returns filed by the due date as per Section 139 (1) of the Income Tax Act, 1961. However, the failure on the part of the petitioner to claim deduction on account of the delay comes in the legitimate way of the petitioner claiming deduction. The failure to file the returns in time has to be construed liberally to allow the benefit, provided such applications are made within a reasonable time.

24. In this case, the assessment orders have been passed for the respective assessment years on 28.12.2010 and on 26.12.2011. While passing the assessment order, the assessing officer could have extended the benefit to the petitioner but for the delay in filing returns in time. Legitimate export incentives that are genuinely available to an 100% Export Oriented Unit should not be denied if such unit is otherwise entitled to such relief on merits. Failure on the part of the petitioner to file such returns in time ought to have been condoned by the 2nd respondent. After all the procedures are meant only to discipline and regulate the conduct of assessts. However, strict application of procedure should not come in the grant of legitimate export incentive to an assessee.

25. In the light of t

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he above discussion, I am inclined to allow the above writ petitions by directing the 5th respondent to complete the reassessment on merits by accepting the returns filed by the petitioner belatedly for the purpose of grant of deduction under Section 10 B of the Income Tax Act, 1961. 26. In case, the petitioner is otherwise entitled to the benefit of the deduction under the aforesaid provision but for the delay in filing the returns, the second respondent is directed to allow the benefit and pass appropriate orders is in accordance with law. 27. Since the dispute pertains to the assessment years 2008-09 and 2009-10, the 5th respondent is therefore requested to pass appropriate orders and finalise the assessment within a period of three months from the date of receipt of copy of this order after due notice to the petitioner and after hearing the petitioner. 28. The writ petitions stand disposed with the above observation. No cost. Consequently, connected miscellaneous petitions are closed.
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