Tax Relief Granted: Court Orders Acceptance of Late Filing Due to COVID-19 Hardship, Urges Liberal Use of Section 119(2)(b.

The HC set aside the impugned order rejecting the petitioner's application under Section 119(2)(b) of the Income Tax Act, directing the respondents to accept Form-10DA and process the return for Assessment Year 2022-23. The court deemed it appropriate to condone the delay due to genuine hardship, considering the COVID-19 pandemic and medical grounds. The judgment in W.P.No.15175 of 2024 favored the petitioner, emphasizing the need for a liberal exercise of power under Section 119(2)(b) to prevent undue hardship, given the form was signed on time and delay was unintentional.

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Issues:
Application under Section 119(2)(b) of the Income Tax Act rejected.

Analysis:
The petitioner, a non-banking financial company, filed Form-10DA for availing deduction under Section 80JJAA after the due date for Assessment Year 2022-23. The application under Section 119(2)(b) was rejected, leading to this writ petition. The petitioner had availed the deduction in subsequent years, and for the relevant year, the form was signed within the time limit but uploaded late due to reasons like the COVID-19 pandemic and medical grounds. The rejection cited the need for extraordinary circumstances for condonation, but the petitioner argued for a liberal exercise of power under Section 119(2)(b) based on genuine hardship to the assessee.

The respondents contended that the petitioner failed to provide justifiable reasons for the delay in filing Form-10DA, opposing any interference. However, the facts presented were clear: the form was signed on time, and multiple reasons for delay were outlined, emphasizing that the delay was not intentional. The power under Section 119(2)(b) should be exercised to prevent genuine hardship to the assessee, as highlighted by the petitioner's circumstances.

The judgment set aside the impugned order, directing the respondents to receive Form-10DA and process the petitioner's return of income based on the provided information. The court found it appropriate to condone the delay considering the genuine hardship that would be caused to the petitioner otherwise. The decision in W.P.No.15175 of 2024 was in favor of the petitioner, emphasizing the necessity to consider the specific circumstances and genuine hardship in such cases.

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