2023 (3) TMI 863 - HC - Income Tax

Condonation of delay in filing the Income tax returns on the specified due date u/s 119(2)(b) - As per petitioner due to covid-19 pandemic and due to change of Auditors, bonafide reasons, unavoidable circumstances and sufficient cause delay occured - HELD THAT - Having regard to the specific assertion on the part of the petitioner to file the returns on or before the specified date due to bonafide reasons, unavoidable circumstances and sufficient cause coupled with the contention that the said delay was on account of change of Auditors and due to prevailing covid-19 pandemic and having regard to the fact that the delay in filing the returns is less than one year, which cannot be said as long or inordinate delay or laches on the part of the petitioner in filing the returns, by adopting a justice oriented approach set aside the impugned order and permit the petitioner to file the returns within a period of three weeks from the date of receipt of a copy of this order. Petition allowed.

Summary

Issues:
1. Petition seeking quashing of an order for condonation of delay in filing income tax returns.
2. Allegation of hyper-technical approach by respondents in rejecting the condonation request.
3. Evaluation of reasons for delay due to change of auditors and COVID-19 pandemic.
4. Decision on setting aside the impugned order and permitting the petitioner to file returns.

Issue 1:
The petitioner sought the quashing of an order dated 03.05.2022 for condonation of delay in filing income tax returns for the assessment year 2020-2021 under Section 119(2)(b) of the Income Tax Act, 1961. The petitioner cited reasons such as change of auditors and the impact of the COVID-19 pandemic as grounds for the delay.

Issue 2:
The petitioner alleged that the respondents had taken a hyper-technical approach in rejecting the request for condonation of delay, despite the genuine reasons provided by the petitioner. The respondents, through their counsel, contended that there was no merit in the writ petition and urged for its dismissal.

Issue 3:
Upon evaluating the material on record, the court noted the petitioner's submission regarding the inability to file returns on time due to the change of auditors and the prevailing COVID-19 pandemic. The court considered the petitioner's assertion of bonafide reasons, unavoidable circumstances, and sufficient cause for the delay. It was observed that the delay was less than one year and not characterized as long or inordinate, leading the court to adopt a justice-oriented approach.

Issue 4:
After considering the circumstances and reasons presented by the petitioner, the court deemed it just and appropriate to set aside the impugned order. The court permitted the petitioner to file the returns within three weeks from the date of receipt of the order. Additionally, it was directed that if the petitioner complies with the timeline, the respondents should accept the returns without considering the condoned delay.

This judgment showcases the court's consideration of genuine reasons for delay in filing income tax returns, emphasizing the impact of external factors such as the COVID-19 pandemic. The court's decision to set aside the order and allow the petitioner to file the returns within a specified period reflects a balanced approach towards addressing the petitioner's grievances.