Sce. 119(2)(b) of Income Tax Act 1961
Debashis Mandal
(Querist) 29 November 2009
This query is : Resolved
Respected Experts,
one lady who retired RBI employee, took Early Retirement under a scheme fraimed by RBI which is as per RBIs letter not a VRS scheme in financial year 2003-2004 & therefore she was not able to take the benifit U/S - 10(10C) of Income Tax Act. & a big sum was taken by Income Tax authority from her as TDS,
Subsequently from IT Tribunal & recently from a High Court a decision was taken that such scheme is a VRS scheme as the scheme is satisfying all the condition of Sec. 10(10C)& therefore the scheme becomes eligible for deduction U/S 10(10C), which is subsiquently intimated by RBI to all the previous employees who took retirement under such scheme at that period,
Now as the demand for refund was not claimed at the time of submission of IT Return & also the time for Revised IT Return has also gone, so ITO has refered the case to CIT & an application subsequently demanded by & also submitted to CIT U/S - 119(2)(b)of Income Tax Act. 1961,
Now CIT is keeping the case pending & advising us to wait,
Now my question is -
1. Is there any time limit within which period such case is to be complete by Income Tax Authority?
2. Can CIT deny to give the benifit of Sec.10(10C)?
3. If CIT denies to give such benifit then what steps can we take?
Pls. answer the questions
Thanks
Debashis
Vineet
(Expert) 01 December 2009
1. Unfortunately, there is no time limit prescribed for order u/s 119(2)(b).
2. CIT may or may not deny the beneft. However, in this case as the matter is covered by decision of High Court and if the same is not subjected to appeal before Supreme Court, you are likely to ge the relief.
3. As per scheme of the Act, order passed by CIT u/s 119(2)(b) is not an appellable order before ITAT. In such circumstances please consult with local lawyer whether writ jurisdiction of High Court can be invoked.
