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Issues involved:
The judgment involves the rejection of an application filed under Section 119(2)(b) of the Income Tax Act for condonation of delay in filing the return and to allow carrying forward of loss for Assessment Year 2001-2002 by the Government of India, Ministry of Finance. Details of the Judgment: Issue 1: Condonation of Delay in Filing Return The Petitioner, a Multi State Cooperative Bank, filed a return of income for Assessment Year 2001-2002 declaring a loss. The delay in filing the return was attributed to the time taken by the statutory auditors to complete the audit and a change in management. The Government of India rejected the application for condonation of delay, citing lack of exceptional circumstances beyond the control of the applicant. The High Court noted that the appointment of statutory auditors was beyond the Petitioner's control and deemed the delay justifiable. The Court emphasized a justice-oriented approach in matters of condonation of delay and set aside the impugned order, allowing the Petitioner to carry forward and set off losses. Issue 2: Legal Provisions and Circulars Section 119(2)(b) of the Income Tax Act empowers the Board to admit applications for exemption or relief after the specified period if genuine hardship is shown. Circular No.8 of 2001 was issued by the CBDT in this context. The Court considered these provisions and the reasons cited by the Petitioner for the delay, emphasizing the Board's discretion to admit applications based on sufficient grounds. The Court upheld the Petitioner's justification for the delay due to the appointment of statutory auditors by the Central Registrar, ruling in favor of condonation based on this ground. Conclusion: The High Court allowed the Petition, setting aside the order rejecting the application for condonation of delay. The delay in filing the return was condoned, enabling the Petitioner to carry forward and set off losses as per the law. The Court directed the parties to bear their respective costs.
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