Tax / Income Tax : Scope of Exercise of Powers under S.119 of Income-tax Act, 1961

Tax / Income Tax : Scope of Exercise of Powers under S.119 of Income-tax Act, 1961 

It has been held in Udit Goyal v. PCIT [2025] GCtR 1545 (Delhi) that "the PCIT who admittedly exercises powers under Section 119(2)(b) of the Income-tax Act, 1961 acts as a quasi-judicial body, is under an obligation to pass a reasoned order."

It may be stated here that Section 119(2)(b) of the Act empowers the CBDT, if it considers it desirable or expedient so to do, for avoiding genuine hardship in any case or class of cases by general or special order, authorize any income tax authority, not being a Joint Commissioner (Appeals) or a Commissioner (Appeals), to admit an application or 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 for making such application of claim and deal with the same on merits in accordance with law.

Another well known principle namely, a person cannot take advantage of his own wrong may also have to be borne in mind.