Court directs CBDT to review grievance & decide on condoning return filing delay amid pandemic, emphasizing taxpayer hardships

The Court directed the CBDT to review the petitioner's grievance and decide on condoning the delay in filing the return within two months, considering the genuine hardship faced due to the pandemic and the short delay of about fifteen days. The judgment underscores the significance of acknowledging taxpayer hardships and the CBDT's discretionary authority to address such situations under the Income Tax Act, 1961.

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Issues involved:
The issues involved in the judgment are the delay in filing the return of income for the assessment year 2021-2022 and the consideration of the concessional rate of tax claimed by the petitioner.

Delay in Filing Return of Income:
The petitioner, a company engaged in construction activities, sought a direction to condone the delay in filing the income tax return for the assessment year 2021-2022 due to the adverse financial impact of the COVID-19 pandemic. Despite the due date being 15.03.2022, the petitioner filed the return on 31.03.2022 under Section 139(4) of the Income Tax Act, 1961. The respondent processed the return under Section 143(1) and issued an intimation demanding a higher tax amount than what was paid by the petitioner. The petitioner contended that the respondent did not consider the Form 10-IC application filed belatedly along with the return, leading to the discrepancy in the tax amount demanded.

Concessional Rate of Tax Claim:
The respondent rejected the petitioner's request for condonation of the delay in filing the return, citing the absence of a circular from the Central Board of Direct Taxes (CBDT) granting authority to condone the delay for the assessment year 2021-2022. The respondent relied on Section 119(2)(b) of the Act, which allows for the consideration of genuine hardship cases for condonation of delay in filing returns. The Court acknowledged the genuine hardship faced by the petitioner due to the pandemic and the short delay of about fifteen days in filing the return. Consequently, the Court directed the CBDT to review the petitioner's grievance and make a decision regarding the condonation of the delay in filing the return along with Form 10-IC within two months from the date of the order.

This judgment highlights the importance of considering genuine hardships faced by taxpayers and the discretionary power of the CBDT to address such cases under the provisions of the Income Tax Act, 1961.

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