INCOME TAX: Where assessee filed its return claiming refund belatedly and reason given for delay was that AAR pronounced ruling, regarding taxability of its income after expiry of period prescribed for filing return, revenue authorities were to be directed to condone delay in filing return subject to payment of cost and, thereupon, assessee’s claim for refund would be decided in accordance with law

Section 239 of the Income-tax Act, 1961 – Refunds – Limitation (Condonation of delay) – Assessment years 2014-15 – Assessee, a Singapore based company, was engaged in business of heavy lifting, erection and primarily carried out work relating to various refineries projects in several countries in Asia and in Gulf region

– For relevant year, assessee filed an application before Authority for Advance Ruling (AAR) seeking a ruling as to whether its income in respect of three projects taken in India would be liable tax in India – AAR gave its ruling on 16-8-2016 whereas due date for filing return of income for relevant year was 30-11-2014

 – Assessee filed its return on 6-3-2017 claiming refund for assessment year in question – Assessee also filed an application for condonation of delay which was rejected

 – Assessee thus filed instant petition wherein reason given for delay in filing return was that it could not file said return before pronouncement of ruling by AAR and there was no dispute that AAR pronounced ruling only after due date on 30-11-2014

– Whether, on facts, respondent was to be directed to condone delay in filing return subject to payment of cost and, thereupon, assessee’s claim for refund would be decided in accordance with law

 – Held, yes

Tiong Woon Project & Contracting Pte. Ltd.