Seth Ghasiram Gopikishan Badruka Educational Society vs. Commissioner of Income Tax (Exemption) Income Tax

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WP/31786/2025HC TelanganaHBHC01027325202522 April 2026Author: P.SAM KOSHY,NARSING RAO NANDIKONDA6 pages
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What did the High Court hold?

The High Court held that the order dated 04.03.2025 passed by the Commissioner of Income Tax (Exemption) was not sustainable in the eye of law and deserved to be set aside. The Court reasoned that the respondent-authorities were obligated to proceed as if the application under Section 119(2)(b) of the Income Tax Act, 1961, had been allowed, following the implication of the Division Bench's order in WP No. 2508 of 2025 dated 10.01.2025. The Court directed the respondents to proceed further in the matter and decide it on its own merits. The operative direction was to set aside the impugned order and allow the writ petition, with the respondents to take appropriate decisions and pass orders accordingly. No issue was expressly left undecided.

What were the facts?

The petitioner, Seth Ghasiram Gopikishan Badruka Educational Society, filed a writ petition challenging an order dated 04.03.2025 passed by the Commissioner of Income Tax (Exemption). This order rejected the society's application for condonation of a 4-day delay in submitting its audit report in Form 10BB for Assessment Year 2020-21. This was the second rejection order for the same issue. Previously, a Division Bench of the High Court, in WP No. 2508 of 2025, had set aside a prior rejection order dated 13.01.2025 and directed the respondent to consider the petitioner's application for delay condonation on merits. The petitioner argued that the second rejection order, despite the High Court's earlier direction, was arbitrary and illegal, affecting the society's right to function.

What were the issues?

1. Whether the second rejection order by the Commissioner of Income Tax (Exemption) dated 04.03.2025, for Assessment Year 2020-21, is sustainable in law, given the prior High Court order in WP No. 2508 of 2025 which had directed consideration of the delay condonation application on merits? Assessee's Contentions: The petitioner argued that the impugned order was passed again by the first respondent, despite the High Court having already set aside a previous rejection order for the same assessment year and directing the respondent to deal with the application on merits. The petitioner contended that passing another rejection order on the same delay of 4 days was contrary to law, arbitrary, and illegal, affecting the right to function of the educational society. Revenue's Contentions: The judgment does not record specific contentions from the revenue.

Which sections of the Income-tax Act were involved?

Section 119(2)(b)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
134471 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Speciat Originat Jurisdiction) WEDNESDAY, THE TWENTY SECOND DAY OF APRIL TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA WRIT PETITION NO: 31786 OF 2025 Between: AND seth Ghasiram Gopikishan Badruka Educational society, (Registered under the societies Act), Registered oflice at 3-2-947, Kachiguda. Hyder-abad, represented by its Secretary, Srikishan Badruka S/o Late Sri Hari prasad G Badruka ...PETITIONER commissioner of lncome Tax (Exemption) rncome Tax, Department,3rd Froor, Aayakar Bhavan, Opposite L.B. Stadium, Basheer Bagh, Hyderabad, 5OOO44 (State of Telangana) Assessing Officer, Exemption Circle 1 (1 ) lncome Tax Department, .lst Floor, Aayakar Bhavan, Opposite L.B. Stadium, Basheerbagh, Hyderabad, 500044 (State of Telangana) Principal Chief Commissioner of lncome Tax (Exemptions), CBDT, Ministry of Finance, lncome Tax Department, Govt. of lndia, Room No. 149A, North Block, New Delhi.'1 '10001. The Union of lndia, rep. by its Secretary, Ministry bf Finance, Department of Revenue, Direct Taxes, Government of India, North Block New Delhi-i.10001. ...RESPONDENTS 1 Z 2 4 Petition under Nticle 226 of the constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High court may be pleased toto issue a writ of Mandamus or any other appropriate writ, order or direciion io declare rn passing again one more rejection order by the 1st respondent for which the Hon,ble court already set aside the said rejection order dt..13.01 .2025 for the assessment year ?92!_?! by condoning the detay oi 4 days in W p. No. 2508 of zois ,0" "rl"i'll ao- 01-2025 vide exhibit No. p-2 and diiected the 1st responrrent to dear with the application submitted by the. petitioner society on 16.0g.2024 on merits for seeking delay condonation is submission of audit repoi in form .loBB and instead rottowing the same'_1gain the 'lst respondent passing agarn rejection order vide DrN and ordei ruo. lrBAlcoMtFr1il2024-2st1o73992189(11 a(oq-oi-zozs on the cieray of 4 days, for the assessment year 202o-21 in affecting right to function the educattn socieiy is-quite contrary to law, arbitrary and illegal and pleased to pass direction or suitable directjons to set aside the order dt.O4-03_2025 passed Vide t)lN and Order No. tr BAtcoMtF t 1 7 t2024_25t 1 07 3992 1 89(1 ) l.A. NO: 2 OF 2O25 Petition under section 15r cpc praying that in the circurrstances stated in the affidavit filed in support of the petition, in"'Hi!n court may be preased to pass interim orders^ ^ suspend the operation of the order dr.o4-o? -2025 in file No. lrBAlcoMlFl17l2024-25t10739'92i89(i) passed by the 1st respondent for the assessment year 2020-21 pending disposal of the above writ petition Counsel for the Petitioner: SRt TEJ PRAKASH TOSHNIWAL Counsel for the Respondent No.1 to 3: SRI VIJHAY K pUNNA (sENtoR sc FoR CBtc) Counsel for the Respondent No.4: SRI N. BHUJANGA RAO, DY. SOLICITOR GENERAL OF INDIA

The Court made the following: ORDER

=::rl:::... ''::- i.t IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HONOURABLE Szu JUSTICE P'SAM KOSHY AND THE HONOURABLE Szu JUSTICE NARSING RAO NANDIKONDA w.P.No.31786 of 2025 Date:22.04.2026 Between: Seth Ghasiram Gopikishan Badruka Educational Society, Hyderabad ... Petitioner And Commissioner of Income Tax (Exemption), Hyderabad and others' ...Respondents ORDER, (per Hon'ble Sri Ju-stice P Sam Koshy) Heard Mr.Tej Prakash Toshniwal, leamed counsel for the petitioner and Mr'.Vijhay I(.Punna, learned Senior Standing Counsel for the Income Tax Department, for respondent Nos'1 to 3 and perused the record.

2.

The plesent is the writ petition filed assailing the order dated 04.03.2025 for the Assessment Year 2020-2021' Vide the impugned orcler, the authority concemed has rejected the condonation of delay application filed by the petitioner under Section 119(2)(b) of the Income Tax Act' 196l (for short "the Act").

3.

It is pertinent at this juncture to tal<e note of the fact that earlier also an application filed by the petitioner under Section i 19

- 4 I 19(2Xb), rather, the Commissioner of Income Tax (Exemption) itself would have allowed the application and proceeded ancl decided the case of the petitioner on itr; o\vn merits in accordance with lar.v.

6.

In the opinion of this Court, the or.der, dared 04.03.2025, passed by the Commissioner of Income Tax (Exerrption), thus, is not sustainable in the eye of law and the same deserves to be and accordingly set aside. As an implication of the order passed by Division Bench in Wp.No.250g of 2025, dated ]t0.01.2025, the respondent-authorities have to proceed and decide e s if application under Section 119 (2) (b) of the Act stood allowed and proceed further in the matter and decide it on its own merits. It is for the respondents to take appropriate decision ancl pass oroers. 7 . Accordingly, the Writ petition stands allor.l.ecl. No order as to costs closed. Miscellaneous applications pending, if anl , shall stand //// SD/-T. SRIDEVI ASSISTANT REGISTRAR SECTION OFFICER 6 1 2 Commissioner of lncome Tax (Exemption) lncome Tax Department'3rd Floor' Aayarar Bhavan, Opposite L.Ei. Stadium' Basheer.Baglh, Hyderabad' 500044 (State of Telangana) Assessing Officer, Exemption Circle 1(1) lncome Tax Department' lsll]99r1 Aayakar "Bhrurn, Opposite L.B. Stadium, Basheerbagh' Hyderabad' 500044 (State of Telangana) r-F. To,

3 Principal Chief Commissioner of lncome Tax (Exemptions), CBDT, Ministry of Finance, lncome Tax Department, Govt. of lndia, Room No. 149A' North Block' New Delhi.1 10001 . The Secretary, Ministry of Finance, Department of Revenue, Direct Taxes, The Union of lndia, Government of lndia, North Block New Delhi-'l 1000'1 One CC to SRI TEJPRAKASH TOSHNIWAL, Advocate [OPUC] One CC to SRI VUHAY K. PUNNA (SENloR SC FOR CBIC) [OPUC] One CC to SRI N. BHUJANGA RAO, Deputy Solicitor General of lndia [OPUC] Two CD Copies BN BS 4 5 6 7 8

I, HlGH COURT DATED: 2210412026 ORDER WP.No.31786 of 2025 ALLOWING THE WRIT PETITION WITHOUT COSTS t ( HE 5I4 2 0 JUll 2026 ZZ o nATc r\rro * ts o Ut \ I lb )t o I R 1 ,o

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