Charitable trust's delayed Form 10B audit report e-filing (687 days) u/s119(2)(b) due to online filing unawareness condoned

The dominant issue was whether delay of 687 days in e-filing the audit report in Form 10B warranted condonation under s.119(2)(b) of the Income-tax Act. The HC held that the explanation-professional unawareness of newly introduced online filing leading to an unintentional oversight-constituted a bona fide and honest reason, and that refusal would unjustly deny consideration of statutory exemptions to a charitable trust providing medical aid; relying on prior HC precedent, it condoned the delay. Consequently, the impugned refusal order was quashed and set aside, and delay stood condoned subject to costs.

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The petition challenged an order dated 25.7.2024 refusing to condone a delay of 687 days in filing the audit report in Form 10B for accounting year 2016-17, though the report had been filed on 18.8.2018. The stated cause was that the petitioner's chartered accountant was unaware of newly introduced online filing requirements, treating the lapse as "unintentional and oversight." The authority held this was not a "genuine reason" for condonation under section 119(b) of the Income-tax Act. The Court noted that the audit report was already on record and accepted that an "honest reason has been given on record for seeking condonation of delay." It reasoned that refusal would lead to non-consideration of exemptions, and the petitioner is a trust providing medical aid to underprivileged persons. Relying on Al Jamia Mohammediyah Education Society v. Commissioner of Income Tax (Exemptions), Mumbai (2024 DGLS (Bom) 1521), the Court deemed it fit to condone the delay, quashed and set aside the impugned order, and allowed condonation subject to costs of Rs. 10,000/- payable to a designated institution.

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