2024 (10) TMI 764 - HC - Income Tax

Delay in filing Return of Income - two-day delay - Petitioner as submitted that the Chartered Accountant had made efforts to file Return of Income and Form 10-IC within the prescribed time limit, however, due to technical difficulties on the Income Tax Portal, the same could not be filed. A screen shot of the technical issues faced by the Chartered Accountant in filing of Form 10-IC was placed for consideration HELD THAT - Revenue does not dispute that the delay in filing the Return is only of two days and that it appears to be wholly bona fide. The principles which are paramount and jurisprudentially accepted, and as discussed by this Court in the case of Jyotsna Mehta 2024 (9) TMI 585 - BOMBAY HIGH COURT in our opinion, mandates their application in the present facts, for the delay to be condoned. Direction to Respondents to condone the delay in filing the return of income (Exhibit C) .

Summary

Issues:
Delay in filing Return of Income for Assessment Year 2021-22.

Analysis:
The petition was filed under Article 226 of the Constitution of India, seeking condonation of a two-day delay in filing the Return of Income for Assessment Year 2021-22. The Petitioner's Chartered Accountant faced technical difficulties on the Income Tax Portal, leading to the delay in filing. Additionally, an incident of fire at the Chartered Accountant's office premises caused further delays due to the shutdown of the computer system. The Petitioner submitted a delay condonation application supported by a grievance application and an Affidavit of the Chartered Accountant detailing the reasons for the delay.

The Petitioner relied on Circular No. 19 of 2023, which provides instructions on condonation of delay in filing Form 10-IC for the AY 2021-2022. The Petitioner had filed Form 10-IC on 22nd February, 2022, entitling them to benefit from the Circular's provisions. The Petitioner also cited a previous judgment where the Court accepted bona fide reasons for delay in filing returns, emphasizing the need for a humane approach in such matters.

The Respondent did not dispute the two-day delay in filing the Return, acknowledging its bona fide nature. The Court, considering the principles discussed in the previous judgment, concluded that the delay should be condoned in the interests of justice. The Court allowed the petition, directing the Respondents to condone the delay in filing the return of income and Form 10-IC, and to delete the variation made in the intimation.

In conclusion, the Court granted the relief sought by the Petitioner, emphasizing the importance of considering genuine reasons for delay in filing returns and adopting a humane approach in such cases.