Delay in Filing AY 2022-23 Return Condoned Under Section 119(2)(b) Due to Genuine Hardship

The HC set aside the Board's rejection of the petitioner's application for condonation of delay in filing the return for AY 2022-23 under s 119(2)(b). The petitioner's delay was due to the senior accountant's serious illness and subsequent resignation, which caused genuine hardship and was unforeseen. The Board's finding of willful negligence lacked evidence and was held perverse. Considering the circumstances and the petitioner's submission of the audited balance sheet, the court directed condonation of the delay and allowed the petitioner 15 days to file the return.

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Issues involved:
Challenge to rejection of application for condonation of delay u/s 119 (2) (b) of Income Tax Act, 1961 for filing returns u/s 139 (1) or 139 (4) for Assessment Year 2022-23.

Judgment Summary:

Issue 1: Rejection of Condonation of Delay Application
The petitioner, an income tax payee, sought condonation of delay for not filing income tax return for Assessment Year 2022-23 due to accountant's illness and subsequent resignation. The Board rejected the application citing willful negligence by management. Petitioner argued lack of evidence and genuine hardship. Court noted lack of substantiation for Board's observations and deemed the delay as unforeseen genuine hardship, setting aside the rejection order.

Issue 2: Interpretation of Section 119 (2) (b) of the Act
The Court examined Section 119 (2) (b) which allows for condonation of delay to avoid genuine hardship. It referenced guidelines and a recommendation for condonation by the Principal Chief Commissioner of Income Tax, West Bengal and Sikkim. The Court criticized the Board's reliance on time limits and emphasized a liberal interpretation of genuine hardship, citing relevant judicial pronouncements.

Final Decision:
The Court set aside the rejection order, condoning the delay in filing the return under Section 119 (2) (b) of the Act. The petitioner was granted 15 days to file the return, subject to assessment officer's review. The judgment emphasized a justice-oriented approach in cases of genuine hardship and unforeseen events, without delving into the return's merits. No costs were awarded, and parties could obtain a certified copy of the order upon request.

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