THE COMPETENT AUTHORITY FOR vs. CENTRAL BOARD OF DIRECT TAXES

CENTRAL BOARD OF DIRECT TAXES OT AND WT SECTION, ROOM NO.13, 5TH FLOOR, JEEVAN VIHAR BUILDING, SANSAD MARG, NEW DELHI – 110 001.

THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, KARNATAKA AND GOA, GROUND FLOOR, CR BUILDING, NO.1 QUEENS ROAD, BENGALURU – 560 001. …RESPONDENTS (BY SRI.M.DILIP, ADVOCATE)

Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. 3. A perusal of the material on record will indicate that in relation to the aforesaid Assessment Years 2016-17 and 2018-19, the petitioner filed returns after the prescribed period along with the application seeking condonation of delay of 1444 days and 714

Per contra, learned counsel for the respondents- Revenue would support the impugned order and submits that there is no merit in the petition and the same is liable to be dismissed.

A perusal of the impugned order will indicate that the respondents have adopted a hyper technical approach in refusing to condone the delay without appreciating that the petitioner couldn't not file the revised return of income before the expiry of the prescribed period as there was discrepancy in valuating the exact recovery made. The respondents failed to appreciate that the petitioner could not file its I.T. returns within the prescribed period on account of bonafide reasons, unavoidable circumstances and sufficient cause, which clearly constituted genuine hardship on the part of the petitioner/assessee as contemplated in the said Circular dated 09.06.2015 and failure to appreciate this, has resulted in erroneous conclusion warranting interference by this Court in the present petition.

Under these circumstances, by adopting a justice oriented approach and having regard to valid and sufficient ground pleaded by the petitioner in support of his claim for condonation of delay, I deem it just and appropriate to set aside the impugned order and condone the delay in filing the returns by the petitioner by allowing the application filed by the petitioner.

In the result, I pass the following: O R D E R (i) The petition is hereby allowed. (ii) The impugned order at Annexure–E dated 02.07.2024, is hereby set-aside; (iii) The application filed by the petitioner under Section 119(2)(b) for condonation of delay of 1444 days in filing the income tax returns in relation to the Assessment Year 2016-17 and 714 days in filing the income tax returns in relation to the Assessment Year 2018-19, are hereby allowed; (iv) The respondents are directed to accept the returns submitted by the petitioner for the aforesaid Assessment Years 2016-17 and 2018-19; (v) It is needless to state that respondents are at liberty to verify the claim of the petitioner and proceed further in accordance with law.