TRUTH PRO FOUNDATION INDIA vs. THE CENTRAL BOARD OF DIRECT TAXES

PDF · subscribers
WP/23962/2025HC KarnatakaKAHC01051606202516 October 2025Bench: S.R.KRISHNA KUMAR6 pages
AI SummaryAllowed

What did the High Court hold?

The High Court allowed the petition. It held that the petitioner, being a public charitable and religious trust, had demonstrated genuine hardship and circumstances beyond its control due to the COVID-19 pandemic, which prevented the timely submission of the audit report in Form 10B. The Court found that the impugned order, which rejected the condonation application on a hyper-technical approach, deserved to be set aside. Adopting a justice-oriented approach, the Court deemed it just, proper, and expedient to set aside the impugned order, allow the application for condonation of delay, and direct the respondent to accept the returns and Form 10B as if filed within the due date. The demands raised for AY 2020-21, 2021-22, and 2022-23 were also set aside.

What were the facts?

The petitioner, Truth Pro Foundation India, a trust engaged in religious and charitable activities, filed its income tax returns for Assessment Years (AY) 2020-21, 2021-22, and 2022-23 on January 30, 2021, March 15, 2022, and November 7, 2022, respectively. The Income Tax Department processed these returns and informed the petitioner that the mandatory audit report in Form 10B was not submitted along with the returns. The petitioner subsequently filed Form 10B along with an application dated February 5, 2025, seeking condonation of delay under Section 119(2)(b) of the Income Tax Act, citing the COVID-19 pandemic as the reason for the delay. The respondent authorities rejected this application, leading to the impugned order dated April 15, 2025. The petitioner filed a writ petition challenging this order and the subsequent demands.

What were the issues?

1. Whether the delay in filing Form 10B for AY 2020-21, 2021-22, and 2022-23 should be condoned under Section 119(2)(b) of the Income Tax Act, 1961, considering the prevailing COVID-19 pandemic? Assessee's Contention: The petitioner argued that the delay in filing Form 10B was due to bonafide reasons, unavoidable circumstances, and sufficient cause, specifically the exigencies arising from the COVID-19 pandemic, which prevented timely submission. Revenue's Contention: The respondents argued that there was no merit in the petition and that it was liable to be dismissed.

Which sections of the Income-tax Act were involved?

Section 119(2)(b),Section 143(1)

AI-generated summary — verify with the full judgment below

- 1 -

HC-KAR NC: 2025:KHC:41524 WP No. 23962 of 2025

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 16TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 23962 OF 2025 (T-IT) BETWEEN:

TRUTH PRO FOUNDATION INDIA A TRUST REGISTERED UNDER THE PROVISIONS OF INDIAN TRUST ACT 1882 HAVING OFFICE AT NO. 307, 3RD FLOOR, VICTORY HARMONY APARTMENT 4TH CROSS, VICTORY HAROMONY APARTMENTS 4TH CROSS, SUMANAGALI SEVASHRAMA ROAD R T NAGAR, BANGALORE KARNATAKA – 560 032 REPRESENTED BY ITS MANAGING TRUSTEE SHIVAKUMAR S. …PETITIONER (BY SRI. RAKESH B BHATT.,ADVOCATE)

AND:

1.

THE CENTRAL BOARD OF DIRECT TAXES GOVERNMENT OF INDIA, MINISTRY OF FINANCE, NORTH BLOCK, SECRETARIAT BUILDNG NEW DELHI PIN – 110 001 REPRESENTED BY ITS CHAIRMAN

2.

COMMISSIONER OF INCOME TAX (EXMPTIONS) 6TH FLOOR, UNITY BUILDING ANNEX, P KALINGARAO ROAD, BENGALURU – 560 027

3.

CENRALIZING PROCESSING CENTRE (CPC) INCOME TAX DEPARTMENT, REPRESENTED BY

Digitally signed by CHANDANA B M Location: High Court of Karnataka

- 2 -

HC-KAR NC: 2025:KHC:41524 WP No. 23962 of 2025

ASSISTANT DIRECTOR OF INCOME TAX, CPC, 1ST FLOOR, PRESTIGE ALPHA NO 48/1 48/2, BERATENAAGRAHARA BEGUR, HOSUR RD, UTTARHALLI HOBLI BENGALURU, KARNATAKA – 560 100 …RESPONDENTS (BY SRI. ARAVIND V. CHAVAN.,ADVOCATE)

THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI OR ANY OTHER WRIT OR ORDER AND QUASH THE ORDER BEARING NO. ITBA/COM/F/17/2025-26/1075620212(1) DATED 15.04.2025 ISSUED BY 2ND RESPONDENT (ANNEXURE K) AND CONDONE THE DELAY IN FILING FORM NO. 10B FOR THE ASSESSMENT YEAR 2020-21, 2021-22 AND 2022-23 AND ETC.,

THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition, petitioner seeks for the following reliefs: “a) Issue a writ of certiorari or any other writ or order and quash the order bearing no. ITBA/COM/F/17/2025- 26/1075620212(1) dated 15.04.2025 issued by 2nd Respondent (ANNEXURE K) and condone the delay in filing form No.10B for the Assessment year 2020- 21, 2021-22 and 2022-23. b) Consequently Issue a writ of certiorari or any other writ or order and quash the demand for Assessment Year 2020-21 by way intimation issued by 3rd Respondent under section 143(1) of Income Tax (ANNEXURE G) dated 30.11.2021.

- 3 -

HC-KAR NC: 2025:KHC:41524 WP No. 23962 of 2025

c) Consequently Issue a writ of certiorari or any other writ or order and quash the demand for Assessment Year 2021-22 by way intimation issued by 3rd Respondent under section 143(1) of Income Tax (ANNEXURE G1) dated 14.12.2022. d) Consequently Issue a writ of certiorari or any other writ or order and quash the demand for Assessment Year 2022-23 by way intimation issued by 3rd Respondent under section 143(1) of Income Tax (ANNEXURE G2) dated 31.03.2023. e) Pass such other order as this Hon’ble court deems fit in the interest of Justice and Equity.”

2.

Heard learned counsel for the petitioner and learned counsel for respondent Nos.1 to 3 and perused the material on record.

3.

A perusal of the material on record will indicate that the petitioner is a Trust involved in religious and charitable activities and submitted his income tax returns for the assessment years 2020-21, 2021-22 and 2022-23 on 30.01.2021, 15.03.2022 and 07.11.2022 respectively. The said returns having been processed, the respondents intimated the petitioner that the audit report in Form-10B applicable to the petitioner-Trust had not been submitted along with the income tax returns and called upon the petitioner to

- 4 -

HC-KAR NC: 2025:KHC:41524 WP No. 23962 of 2025

submit the same. In response thereto, the petitioner submitted the said audit report in Form-10B along with an application dated 05.02.2025 invoking Section 119(2)(b) of the I.T. Act seeking condonation of delay in submitting the said audit report. It was contended that the inability and omission on the part of the petitioner to submit the said audit report along with the income tax returns was due to bonafide reasons, unavoidable circumstances and sufficient cause, since there was Covid-19 pandemic exigency prevailing in the country and hence, the petitioner could not file Form-10B within the due date. The said application having was considered by the respondent, who declined to condone the delay and accordingly, passed the impugned order dated 15.04.2025, rejecting the application for condonation of delay, aggrieved by which the petitioner is before this Court by way of the present petition.

4.

Per contra, learned counsel for the respondents submits that there is no merit in the petition and the same is liable to be dismissed.

5.

A perusal of the material on record will indicate that it is an undisputed fact that the petitioner is a Public Charitable and

- 5 -

HC-KAR NC: 2025:KHC:41524 WP No. 23962 of 2025

Religious Trust carrying on charitable and religious activities. It is also not in dispute that the petitioner had submitted its income tax returns within the prescribed period, as a Trust. Under these circumstances, in the light of the specific assertion on the part of the petitioner that its inability and omission to submit the audit report in From-10B along with its income tax returns was due to bonafide reasons, unavoidable circumstances and sufficient cause, and due to Covid-19 pandemic exigency, I am of the view that the petitioner had demonstrated and established genuine hardship and circumstances beyond its control, which prevented it from submitting the audit report along with the I.T. returns. Under these circumstances, the impugned order, which proceeds on a hyper technical approach deserves to be set aside and by adopting a justice oriented approach, in the light of the undisputed fact that the petitioner is Religious and Charitable Trust, it would be just, proper and expedient to set aside the impugned order and allow the application filed by the petitioner for condonation of delay and issue further directions in this regard.

6.

In the result, the following order is passed :

- 6 -

HC-KAR NC: 2025:KHC:41524 WP No. 23962 of 2025

ORDER

(i) Petition is hereby allowed;

(ii) The impugned order at Annexure-K dated 15.04.2025 passed by respondent No.2, the impugned demands dated 30.11.2021, 14.12.2022 and 31.03.2023 for the Assessment Year 2020-21, 2021-22 and 2022-23 respectively are hereby set aside;

(iii) The application dated 05.02.2025 filed under Section 119(2)(b) of the I.T. Act seeking condonation of delay in submitting the audit report in Form-10B by the petitioner is hereby condoned;

(iv) Respondent No.3 is directed to accept the income tax returns as well as Audit Report in Form-10B filed by the petitioner as if it was filed within the due date and proceed further, in accordance with law.

Sd/- (S.R.KRISHNA KUMAR) JUDGE

BMC List No.: 2 Sl No.: 6

More judgments on Section 119(2)(b)

All 980 judgments and leading authorities on Section 119(2)(b) →

Recent GST High Court judgments

Search GST case law →