Order Quashed: Revised Return Allowed Due to COVID-19 Hardship and Technical Issues for A.Y. 2019-20.

The HC quashed the impugned order dated 12.10.2021, allowing the petitioner to file a revised return for A.Y. 2019-20. The court condoned the delay, citing genuine hardship due to COVID-19 and technical issues, and emphasized a liberal interpretation of "genuine hardship" under Section 119(2)(b) for substantive justice.

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Issues Involved:
1. Validity of the impugned order dated 12.10.2021.
2. Condonation of delay in filing the return of income.
3. Acceptance of the original return or allowance to file a fresh/revised return for A.Y. 2019-20.

Summary:

Issue 1: Validity of the Impugned Order Dated 12.10.2021
The petitioner challenged the impugned order dated 12.10.2021, which dismissed the application for condonation of delay in filing the return of income. The court found that the respondent authority had dismissed the application on the ground that the petitioner failed to show genuine hardship. However, it was noted that another authority, PCIT-1, had initially condoned the delay considering the same grounds but later withdrew the order due to lack of jurisdiction.

Issue 2: Condonation of Delay in Filing the Return of Income
The petitioner argued that genuine hardship prevented the rectification of the return within the stipulated period due to the COVID-19 lockdown. The court referred to Section 119(2)(b) of the Income Tax Act, which allows for condonation of delay to avoid genuine hardship. The court cited precedents, including the Bombay High Court's decision in ADCC Infocom (P.) Ltd. v. Principal Chief Commissioner of Income-tax, emphasizing that "genuine hardship" should be construed liberally. The court concluded that the petitioner had shown genuine hardship due to the lockdown and technical issues on the CPC portal, warranting the condonation of delay.

Issue 3: Acceptance of the Original Return or Allowance to File Fresh/Revised Return for A.Y. 2019-20
The court observed that the petitioner had made multiple attempts to rectify the return and had faced technical difficulties. The petitioner had also filed applications before various authorities seeking condonation of delay. Given the genuine hardship and the liberal interpretation of Section 119(2)(b), the court allowed the petition. The impugned order was quashed, and the petitioner was permitted to file a revised return of income for the assessment year 2019-2020.

Conclusion:
The court quashed the impugned order dated 12.10.2021, condoned the delay in filing the return of income, and permitted the petitioner to file a revised return for the assessment year 2019-2020. The decision emphasized a liberal interpretation of "genuine hardship" under Section 119(2)(b) to ensure substantive justice.

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