Tax Relief Granted for Pandemic Hardship: Court Orders Processing of 2020-2021, 2021-2022 Returns Without Costs.

The HC set aside the impugned orders rejecting the petitioner's applications under Section 119(2)(b) of the Income Tax Act, recognizing genuine hardship due to the pandemic and personal losses. The Court directed the processing of the petitioner's income tax returns for 2020-2021 and 2021-2022, allowing the writ petitions without costs.

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Issues:
Challenge to rejection of applications under Section 119(2)(b) of the Income Tax Act.

Analysis:
The petitioner, a resident of the United States, sold a property in India in 2018-2019 and claimed exemption under Section 54 of the Income Tax Act. Due to Covid-19 pandemic and personal reasons, he was unable to file income tax returns for assessment years 2020-21 and 2021-2022. Upon realizing excessive deductions and eligibility for refunds, he sought condonation of delay under Section 119(2)(b), which was rejected by the Commissioner of Income Tax. The petitioner argued genuine hardship, emphasizing the exceptional circumstances that led to the delay.

The respondent contended that the petitioner failed to prove the uncontrollable reasons for non-filing of returns, opposing any interference with the impugned orders. The Court considered Section 119(2)(b) which allows condonation of delay in cases of genuine hardship. It highlighted the liberal interpretation of the provision and the necessity to assess if genuine hardship exists. The petitioner's residence in the US during the pandemic, personal losses, and documented incidents like theft affecting his ability to file returns were crucial factors in the decision.

After evaluating the circumstances, the Court found the petitioner's case suitable for condoning the delay in filing returns for the relevant assessment years. Consequently, the impugned orders were set aside, directing the processing of the petitioner's income tax returns for 2020-2021 and 2021-2022 in accordance with the law. The writ petitions were allowed without costs, and connected miscellaneous petitions were closed.

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