Court Allows Late Tax Return Filing Due to Genuine Hardship; Return Deemed Timely for Assessment Year 2021-2022.

The HC allowed the writ petition, condoning a 15-day delay in filing the tax return for the assessment year 2021-2022 under Section 119(2)(b) of the Income Tax Act, 1961. The court quashed the impugned order, directing the respondents to treat the return as timely filed, acknowledging the petitioner's genuine hardship as a widow running a small business. All pending applications were disposed of, emphasizing that while the assessment's legality could be contested, the limitation period was not an issue.

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Issues: Condonation of delay in filing the return for the assessment year 2021-2022 under Section 119 (2) (b) of the Income Tax Act 1961.

In this case, the petitioner, a widow running a small business trading herbs, sought condonation of a 15-day delay in filing the return for the assessment year 2021-2022 under Section 119 (2) (b) of the Income Tax Act 1961. The petitioner's gross income after deductions was below Rs. 2,50,000, with TDS of Rs. 77,220 reflected in Form 26AS. The petitioner cited reasons for the delay, including computer issues during account preparation. The petitioner's counsel argued that the delay should be condoned due to the peculiar circumstances. The respondents opposed, emphasizing the importance of following time limits and questioning the condonation based on sympathy alone. The court noted that the respondents have the power to condone delays with sufficient reasons. Referring to Circular 9/2015, the court highlighted the need for genuine hardship in such cases. Considering the petitioner's explanation and hardship as a widow running a small business, the court allowed the writ petition, quashing the impugned order and directing the respondents to treat the return as filed within time. The judgment clarified that while the assessment could be questioned on law, limitation could not be an issue. All pending applications were disposed of accordingly.

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