Can logic supersede law?
V. K. Subramani While interpreting tax provisions, the principles of equity and logic are often not applied. However, two recent decisions of the Karnataka High Court have been exceptions, with both favouring the assessees, and these could turn out to be a precedent for many more cases to come. Time-barred returns In the Balakrishnan (290 ITR 227) case, the assessee took voluntary retirement and received Rs 6.01 lakh. After exemption of Rs 5 lakh under Section 10(10C), the balance was subjected to TDS (tax deduction at source), and Rs 29,331 deducted. The matter related to the assessment year 2003-04 and the assessee filed return of income in May 2006, beyond the time prescribed in law. The legal cut-off time expired on March 31, 2005. The assessee claimed that the entire tax deducted at source was eligible for refund as his total income was below the taxable limit resulting in `nil’ tax liability. The assessing officer (AO) refused to act on the time-barred return and in the writ it w
