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TMI Blog2024 (6) TMI 601X X X X Extracts X X X X X X X X Extracts X X X X ..... ar 2022-23, had been rejected. 2. Mr. Surana, learned advocate representing the petitioner submits that the petitioner is an income tax payee and had been regularly filing its income tax returns for the last 23 years. It is the petitioner's case that the petitioner could not file its return of income under Section 139 (1) of the said Act for the Assessment Year 2022-23 for the reasons beyond its control. It is also the petitioner's case that the petitioner's senior accountant, Mr. Arun Chatterjee, had been diagnosed with heart ailments for which he had to be hospitalized and as such the books of accounts could not be finalized which resulted in delayed finalization of accounts. 3. According to the petitioner, due to deteriorating health o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... donation of delay under Section 119 (2) (b) of the said Act, especially, when at the instance of the Board, by a letter dated 28th April, 2023, the Principal Chief Commissioner of Income Tax, West Bengal and Sikkim had recommended condonation of delay in non-filing of return of income for the Assessment Year 2022-23. He submits that the finding reached by the Board that the petitioner had adopted a casual approach and was willfully negligent was based on no evidence and is perverse. The material placed before the Board to establish genuine hardship was also not considered. The impugned order is perverse and should be set aside. He prays that necessary direction should also be issued by this Hon'ble Court thereby condoning the delay in terms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... legislature has provided time limits for certain obligations under the Act and these time limits have to be observed to be able to claim deductions, allowances and avoid interest and penalty. This may be termed a hardship but it is hardship imposed by law in the interest of proper regulation of the Act. Further, in determining whether genuine hardship caused to the assessee, one has to see whether delay in filing of the return was due to a reasonable cause or not. Further, the Hon'ble Supreme Court in the case of Ranka and Others vs Rewa Coal Field Ltd. (AIR 1962 SC 361) has held that everyday of delay needs to be explained with cogent evidence. Relevance is placed on the above judicial pronoun cements as it is observed that the Manag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incipal Chief Commissioner of Income Tax, West Bengal and Sikkim had recommended condonation of delay in non-filing of return of income for the Assessment Year 2022-23. The Board apparently had brushed aside the said recommendation without identifying the reasons as to why such recommendation had been ignored. Mr. Dudhoria, learned advocate representing the respondents has also not been able to identify any reason as to why the recommendation made by the Principal Chief Commissioner of Income Tax, West Bengal and Sikkim, at the instance of the Board had been overlooked. It, however, appears that the Board by placing reliance on the judgment delivered by the Hon'ble Delhi High Court in the case of BU Bhandari Nandgude Patil Associates v. CBD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. The authorities should have taken a justice oriented approach and if a claim is legitimately due to an applicant even if a delay has occasional due to genuine hardship that should not be denied on technicalities. As hold by this Court in the case of Sitaldas K. Motwani vs. Director General of Income Tax and Others (supra), the word "genuine" has to be given a liberal meaning in view of the law laid down by the Supreme Court in the case of B. M. Malani Vs. Commissioner of Income Tax and Another, (2008) 306 ITR 196 (SC). Paragraph 13 of the decision of this Court in Sitaldas K. Motwani vs. Director General of Income Tax and Others (supra) is usefully quoted as under:- "13. The apex court, in the case of B.M. Malani Vs. CIT, (2008) 306 I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner and the subsequent resignation of the petitioner's accountant due to his health condition, the same would certainly make out a case of genuine hardship. The delay also does not appear to be on account of any negligence or mala fide of the petitioner as the illness and the subsequent resignation of the accountant was an entirely unforeseen event. In the facts as noted above, I am of the view that the authorities ought to have taken a justice oriented approach. 10. Having regard to the aforesaid, the order dated 31st January, 2024 cannot be sustained and the same is accordingly set aside. 11. Since, no fruitful purpose will be served by remanding the matter back to the Board for reconsideration of the aforesaid issue, I am of the view t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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