2024 (6) TMI 1234 - HC - Income Tax

Rejection of application u/s 119(2)(b) - delay filing Form-10DA, which is necessary for availing deduction u/s 80JJAA - assessee submits that medical grounds and the continuation of the COVID 19 pandemic were cited as reasons for delay in filing the said form - HELD THAT - The petitioner has placed on record Form-10DA. On perusal, it is clear that the Chartered Accountant signed the document on 30.06.2022, which is within the time limit of 30.09.2022. The petitioner has also placed on record the ITR acknowledgment for assessment year 2022-23 and the intimation u/s 143(1) accepting the deduction. In the application for condonation of delay, the petitioner has set out multiple reasons including the continuation of the COVID 19 pandemic, medical grounds of family member and has stated that the delay was neither willful nor wanton. As contended by learned counsel for the petitioner, the power u/s 119(2)(b) is required to be exercised whenever the refusal to condone delay would result in genuine hardship to the assessee. Application was rejected by recording that this power is to be exercised only in extraordinary circumstances. There is nothing in Section 119(2)(b) which indicates that the power should only be exercised in extraordinary circumstances. By taking into account the fact that Form-10DA was signed on 30.06.2022 and filed on the extended date for filing the return of income, in my considered view, it is an appropriate case for condoning the delay. Undoubtedly, genuine hardship would be caused to the petitioner unless the delay is condoned. WP allowed. The impugned order is set aside. As a consequence, the respondents are directed to receive Form-10DA and process the petitioner's return of income on such basis.

Summary

Issues:
Application under Section 119(2)(b) of the Income Tax Act rejected.

Analysis:
The petitioner, a non-banking financial company, filed Form-10DA for availing deduction under Section 80JJAA after the due date for Assessment Year 2022-23. The application under Section 119(2)(b) was rejected, leading to this writ petition. The petitioner had availed the deduction in subsequent years, and for the relevant year, the form was signed within the time limit but uploaded late due to reasons like the COVID-19 pandemic and medical grounds. The rejection cited the need for extraordinary circumstances for condonation, but the petitioner argued for a liberal exercise of power under Section 119(2)(b) based on genuine hardship to the assessee.

The respondents contended that the petitioner failed to provide justifiable reasons for the delay in filing Form-10DA, opposing any interference. However, the facts presented were clear: the form was signed on time, and multiple reasons for delay were outlined, emphasizing that the delay was not intentional. The power under Section 119(2)(b) should be exercised to prevent genuine hardship to the assessee, as highlighted by the petitioner's circumstances.

The judgment set aside the impugned order, directing the respondents to receive Form-10DA and process the petitioner's return of income based on the provided information. The court found it appropriate to condone the delay considering the genuine hardship that would be caused to the petitioner otherwise. The decision in W.P.No.15175 of 2024 was in favor of the petitioner, emphasizing the necessity to consider the specific circumstances and genuine hardship in such cases.