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TMI Blog2025 (2) TMI 774X X X X Extracts X X X X X X X X Extracts X X X X ..... od, his mother was operated for 3 major spine problems at Hinduja Hospital. His mother was completely bedridden after the surgeries and, hence, the director could not attend the office on a regular basis. Petitioner also submitted that since the business of the company had expanded, and there was need for an ERP system for the company to manage its operations, the company, during F.Y. 2016-17, implemented a new ERP accounting programme system in its office. During this phase, the company experienced a high attrition rate impacting accounting work on day to day basis, leading to delayed preparation of financial information. In these circumstances, the Petitioner has sought for condonation of delay. Such factors which are purely fortuitous and purely human attributes necessarily required due consideration, when it comes to compliances of time limits prescribed under the IT Act. As observed by this Court in Jyotsna M. Mehta [2024 (9) TMI 585 - BOMBAY HIGH COURT] the situation in hand would be akin to how a Court would consider in the legal proceedings before it, in condoning delay in filing of proceedings. Resultantly, the impugned Order dated 21st September 2023 is quashed and set ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eism of the CFO from work. After repeated inquiries, it was learnt that the CFO was facing various family issues that ultimately resulted in his total lack of interest, focus and concentration towards his duties and responsibilities towards the Company. Little did the Management of the Company knew about his personal problems until a 'socially unacceptable conduct' came to light when his wife barged into the registered office of the Company along with her children. While the entire scene at the office does not deserve precise mention on account of interference into the personal life of the CFO, it is unfortunate that the Company alone is made to bear the brunt of the delay, default and the unprofessional act of filling figures in the return of income uploaded on 07.11.2017 without taking any cognizance of the audited accounts already available to him for proper filing of returns along with other statutory reports if any. It is extremely unfortunate that it is only after receipt of Notice under section 142(1) of the Act dated 21.02.2019 calling for information and details pursuant to Notice issued under section 143(2) of the Act, we realised that original tax filings on 07.11.2017 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by any stretch of imagination. Hence, the mistake on the part of the Company for filing a defective original return of income may please be condoned and further filing a revised return of income on 18.03.2019 which delayed by more than 15 months may kindly be condoned by accepting the said revised return as a return filed under section 139 (5) of the Act." 5. Thereafter, the Petitioner addressed a letter dated 3rd March 2021 to Respondent No. 1. The Petitioner urged that in light of the circumstances and in consideration of the Petitioner's Application dated 11th November 2019, the delay in filing form no. 10 CCB be condoned and the revised Income Tax Returns dated 18th March 2019 be considered as a valid return. 6. Respondent No. 1 addressed a letter dated 31st August 2023, through the Additional Commissioner of Income Tax, ITA Cell, CBDT, New Delhi, in response to the Petitioner's Application dated 11th November 2019, offering an opportunity of hearing to explain why the Petitioner's Application dated 11th November 2019, be not rejected. The Petitioner received the said letter dated 31st August 2023, only on 14th September, 2023. 7. In response to the said letter dated 31 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entioned in original return filed belatedly on 08.11.2017. Even after filing return belatedly, assessee did not file form 10 CCB for about 1 year and 3months. It was only after assessment proceedings were carried out and it was noticed that figures as mentioned in annual report dated 05.09.2017 did not match with figures as mentioned in ITR filed belatedly by assessee, assessee filed revised return along with other related forms. Therefore, reasons and rationale as given by assessee is not acceptable. Thus, the reason as stated by assessee are very general in nature, it may not be construed as reasonable cause for not filing Form by due date. Therefore, no reasonable cause was shown to have been established in assessee's petition to justify the claim of genuine hardship under section 119(2)(b) of the Act. Considering the above facts, a show cause dated 31.08.2023 was sent to applicant at the email id [email protected] {communication email ID mentioned in its petition form). The show cause letter was delivered on email ID, however, no reply was received on mail. Hence, applicant has remained non-responsive despite all the efforts. 5. As per section 119(2) (b) of the Act, the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r condonation of delay and related matters. It is the case of the Petitioner that, in these circumstances, the Petitioner became aware of the letter dated 31st August 2023, on 14th September 2023, and of the Order dated 21st September 2023, on 30th September 2023, when they received both of them through Indian Post. As stated above, the Order dated 21st September 2023 is impugned in the present Petition. 10. We have heard the learned counsel for the parties. We have also perused the documents on record. 11. We may observe that this Court in Jyotsna M. Mehta v.s, Principal Commissioner of Income-tax & Others [2024 SCC Online Bom. 2946] to which one of us (G.S. Kulkarni, J.) was a member, has observed that the approach of the Additional Commissioner cannot be mechanical, who ought to have been more sensitive to the cause which was brought before him when the Petitioner prayed for condonation of delay of 89 days, observed that it can never be that technicalities and rigidity of the rules would not recognize genuine human problems of such nature, which may prevent a person from achieving such compliances. It is to cater to such situations that the legislature has made a provision con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... company experienced a high attrition rate impacting accounting work on day to day basis, leading to delayed preparation of financial information. In these circumstances, the Petitioner has sought for condonation of delay. 13. In our view, such factors which are purely fortuitous and purely human attributes necessarily required due consideration, when it comes to compliances of time limits prescribed under the IT Act. As observed by this Court in Jyotsna M. Mehta (supra), the situation in hand would be akin to how a Court would consider in the legal proceedings before it, in condoning delay in filing of proceedings. The Court observed thus:- "In dealing with such situations, the Courts would not discard an emphatic/ humane view of the matter in condoning the delay in filing legal proceedings when the law confers powers on the authority to condone the delay in the litigant pursuing Court proceedings. This is of course on testing the bonafides of such plea as may be urged. In our opinion , such principles, which are quite paramount and jurisprudentially accepted, are certainly applicable when the assessee seeks condonation of delay in filing Income Tax Returns, so as to remove the ..... 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