Court Allows 361-Day Late Filing of Tax Form Due to Pandemic Oversight for Jain Trust, Orders Rectification Application.

The HC quashed the impugned order dated 3rd November 2023, condoning the 361-day delay in filing Form No. 10 for Assessment Year 2019-20 by the petitioner, a trust managing a Jain Derasar. The Court accepted the explanation of oversight due to the pandemic and commended the auditor's candor. The petitioner was instructed to file an application for rectification under Section 154 of the Income Tax Act within two weeks. The petition was disposed of, and the delay was officially condoned, with no observations made on the merits of the case.

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Issues: Condonation of delay in filing Form No.10 for Assessment Year 2019-20 under Section 119(2)(b) of the Income Tax Act, 1961.

Summary:
The petitioner, a trust managing a Jain Derasar in Mumbai, filed an application for condonation of delay in submitting Form No.10 for Assessment Year 2019-20. The delay of 361 days in filing Form 10 was due to oversight by the trust's management. The condonation application was rejected by Respondent No.1 citing lack of supporting evidence for a reasonable cause preventing timely filing. The petitioner, an old trust registered in 1987, was expected to be aware of Income Tax Department regulations. However, an additional affidavit by the auditor, Mr. Dedhia, explained that the delay was unintentional and due to inadvertence. Mr. Dedhia admitted his oversight and ignorance of the rules, attributing the delay to the peak of the covid pandemic and subsequent intimation under Section 143(1) of the Act.

The High Court, after considering Mr. Dedhia's explanation and the circumstances, quashed the impugned order dated 3rd November 2023 and condoned the delay in filing Form No. 10 for Assessment Year 2019-20. The Court commended Mr. Dedhia for his candor in admitting the mistake. The petitioner was advised to take necessary steps, including filing an application under Section 154 of the Act for rectification within two weeks from the date of the order upload. It was clarified that no observations were made on the merits of the matter.

The petition was disposed of, and the delay in filing Form No. 10 was treated as condoned.

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