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TMI Blog2024 (1) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... negatively impacted and correspondingly in gross profit for A.Y. 2020-21 was unbelievable as also the applicant had not submitted any documents such as IPD register etc. to substantiate the same. Having noted the ratio of the decisions relied uponm by the petitioner as also the statutory scheme and the guidelines prescribed by CBDT, we are of the considered view that the first ground for rejection of the application seeking condonation of delay in submitting the return that no genuine hardship can be said to have been caused to the petitioner is a result of is an arbitrary approach of respondent No. 2. Delay was merely 26 days and judicial notice can be taken to the fact that the country was facing overwhelming situation of second wave of Covid-19, which turned out to be fatal between the last week of March, 2021 till June, 2021, the entire set up of the whole country was paralyzed. Hospitals were flooded with patients and lot of death had occurred during the said period. The petitioner being a hospital establishment, having been declared a dedicated Covid facility by the District Administration, demonstrably was dealing with unprecedented adverse circumstances. The claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 04.10.2023 passed by the respondent No. 2 in rejecting the application seeking permission for condonation of delay and permit to file income tax return for the A.Y. 2020-21, the due date for which had expired on 31.05.2021. 3. The delay in filing the income tax return was 26 days as the application under Section 119(2)(b) of the Income-Tax Act, 1961 was filed on 26.06.2021. The order impugned rejecting the application under Section 119(2)(b) of the Income-Tax Act, 1961 contains two grounds of rejection. The first is pertaining to genuineness and genuine hardship claimed by the petitioner in submitting return with the delay of 26 days. One of the reasons given by the petitioner in response to the show-cause notice and as also in the application seeking for condonation of delay on grounds of genuine hardship was : - a. The accounts for FY 2019-20 could not be finalized in time because the accounts staff could not attend duties for a considerable time due to Covid 19 pandemic related issues and inaccessibility of Directors due to their predominant pre-occupation with treatment of Covid patients as hospital was converted into dedicated Covid care facility. 4. The said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turn under sub-section (5) of Section 139 for A.Y. 2020-21 until 31.05.2021. Extended time limit was notified to mitigate the challenges faced by the taxpayers in meeting the statutory and regulatory compliances due to the outbreak of Covid-19 and enabled taxpayers to file their return of income. Inspite of this, as the applicant had failed to file its return during the extended time limit as well as without demonstrating any cogent reason. 8. It was contended that the reasons provided for not filing the return were of general nature and could not be accepted as a ground for genuine hardship as per paragraph 5(I) of the circular dated 09.0.2015, the application seeking for condonation of delay under Section 119(2)(b) for filing income tax return for A.Y. 2020-21 is liable to be rejected. 9. Having said so, the respondent No. 2 had proceeded to examine the correctness of the claim made by the petitioner in the application seeking for refund of TDS and concluded that the applicant has failed to establish the correctness and genuineness of income and refund claim for A.Y. 2020-21 as well. Thus, it seems to us that while rejecting the application seeking for condonation of delay, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely. It was further noted that the merits of the case of the assessee could be simultaneously considered by the authority exercising powers under Section 119(2)(b) of the Income Tax Act, however, the dominant purpose to be achieved is to condone the delay and, therefore, it is the grounds offering explanation of the delay which should overweigh with the authorities. 13. Having heard learned counsels for the parties and perused the record. 14. Taking note of the above decisions of the Division Benches of this Court, the Bombay High Court as also the judgment of the Kerala High Court in M/s. Best Ready Mix Concrete versus the Principal Commissioner of Income Tax passed in WP(C) No. 37648 of 2023 , placed before us, we may go through Section 119(2)(b); sub-section 2(b) provides that the Board to auhtorise any income tax authority, not being a commissional (appeals) to admit an application or claim for refund etc. after expiry of the period specified under the Act for making such application or claim and deal with the same on merits in accordance with law. 15. CBDT circular No. 09/2015 dated 09.06.2015 has been issued to prescribing guidelines on the condonation of delay an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e number of patients in Cathlab Department, its revenue had negatively impacted and correspondingly in gross profit for A.Y. 2020-21 was unbelievable as also the applicant had not submitted any documents such as IPD register etc. to substantiate the same. 19. Having noted the ratio of the decisions relied upon by the learned counsel by the petitioner as also the statutory scheme and the guidelines prescribed by CBDT, we are of the considered view that the first ground for rejection of the application seeking condonation of delay in submitting the return that no genuine hardship can be said to have been caused to the petitioner is a result of is an arbitrary approach of respondent No. 2. As noted above, the delay was merely 26 days and judicial notice can be taken to the fact that the country was facing overwhelming situation of second wave of Covid-19, which turned out to be fatal between the last week of March, 2021 till June, 2021, the entire set up of the whole country was paralyzed. Hospitals were flooded with patients and lot of death had occurred during the said period. The petitioner being a hospital establishment, having been declared a dedicated Covid facility by the Di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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