Court Overturns Order Denying Time Extension for Filing Petition

The court set aside the order rejecting the application for relaxation of time in filing the petition under Section-10(23C) (vi) for multiple assessment years. The court directed the competent authority to pass a fresh order on merit within four months, considering the society's genuine hardship due to ignorance of the amendment and the complexity of the Income Tax Act. The writ petition was allowed, providing relief to the petitioner.

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Issues:
Assessment of exemption under Section-10(23C) (vi) for multiple years, rejection of application for relaxation of time, genuine hardship, ignorance of amendment, condonation of delay.

Analysis:
The petitioner challenged the order rejecting the application for relaxation of time in filing the petition under Section-10(23C) (vi) for various assessment years. The petitioner's counsel argued that the society was previously registered and exempted under relevant sections until a new amendment came into force, requiring a fresh application for exemption. The society, under a bona-fide belief of continuous exemption, only applied for exemption and condonation of delay after receiving a notice under Section-148. The department's counsel contended that there was no genuine hardship justifying the delay condonation. The Court noted the complexity of the Income Tax Act and the society's exclusive engagement in promoting Hindi language, which led to ignorance of the amendment. Referring to a CBDT Circular, the Court emphasized that the department should not take advantage of the assessee's ignorance.

The Court, considering the circumstances, set aside the impugned order and directed the competent authority to pass a fresh order on merit for the mentioned assessment years within four months of receiving the certified copy of the judgment. Consequently, the writ petition was allowed, granting relief to the petitioner.

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