Delay in IT Return Filing Overturned Due to Genuine Reasons; Case Sent Back for Reconsideration as per Guidelines.

The HC quashed the Principal CIT's order rejecting the condonation of delay in filing the IT return under Section 119(2)(b) for the Assessment Year 2021-22. The Court found the delay was due to genuine reasons beyond the petitioner's control, such as illness and the Auditor's Report requirement. The matter was remitted for reconsideration, directing compliance with the law and CBDT guidelines.

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Issues:
Challenge to order rejecting delay in filing IT return under Section 119(2)(b)

Analysis:
The petitioner filed a writ petition challenging the rejection of the request to condone the delay in filing the IT return for the Assessment year 2021-22 under Section 119(2)(b). The petitioner argued that the delay in filing the return was due to reasons beyond his control, specifically citing his illness and the requirement of the Auditor's Report as per Section 44AB of the IT Act. The petitioner contended that the delay should have been condoned, especially considering the relief granted by the apex Court for condonation of delay due to extraordinary situations like the COVID-19 pandemic. The petitioner's counsel emphasized that the delay was unintentional and that the return could not be filed without condonation.

The Senior Standing Counsel for the I.T. Department argued that since there was a delay in filing the return, the order rejecting the delay was justified and did not require interference by the Court. However, the petitioner's counsel highlighted that the delay was due to the petitioner's illness and the requirement of the Auditor's Report, which were circumstances beyond the petitioner's control. The petitioner's transactions for the relevant year fell under the limit of Statutory Audit, and the delay in filing was a result of the illness and the requirement to upload the statutory Audit Report by the Chartered Accountant. The petitioner's counsel further pointed out the guidelines provided by the CBDT for condonation of delay in filing the IT return, which should have been considered by the department.

Upon reviewing the arguments and records, the Court found that the delay in filing the return was due to genuine reasons beyond the petitioner's control, such as illness and the necessity of the Auditor's Report. The Court noted that the apex Court and the High Court had extended limitations and relaxations for extraordinary situations like the COVID-19 pandemic. The Court held that the rejection of the condonation of delay application by the Principal CIT was not justified, especially considering the guidelines provided by the CBDT and the orders of the higher courts. Consequently, the Court quashed the order of the Principal CIT and remitted the matter back to reconsider the return submitted by the petitioner and pass an appropriate order in accordance with the law.

In conclusion, the Court disposed of the writ petition with the direction to reconsider the petitioner's IT return and make a decision in compliance with the law, emphasizing the need to consider the genuine reasons for the delay and the guidelines provided for condonation of delay in filing the IT return.

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