Marginal delay in Form 10B filing may be condoned where a pragmatic approach to extension of time is required.

A marginal delay of 1 hour 19 minutes and 16 seconds in uploading Form 10B audit report was considered suitable for condonation under section 119(2)(b) of the Income-tax Act, 1961. The Court applied a pragmatic approach to extension of time, noting that the overrun occurred immediately after midnight on the last date, caused no apparent prejudice to the revenue, and did not justify treating the explanation as vague or unsupported. The refusal to condone was found perverse, the impugned rejection order was quashed, and the filing was directed to be treated as compliant.

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Issues: Whether delay of 1 hour 19 minutes and 16 seconds in uploading Form 10B audit report deserved condonation under section 119(2)(b) of the Income-tax Act, 1961, and whether the rejection order was liable to be set aside.

Analysis: The delay was marginal and occurred immediately after midnight on the last date. The authority treated the explanation as vague and unsupported, but the Court held that the surrounding circumstances required a pragmatic approach to extension of time. The short overrun did not appear to prejudice the revenue, and the refusal to condone the delay was found to be perverse.

Conclusion: The delay was liable to be condoned and the rejection order could not stand.

Final Conclusion: The impugned order was quashed and the Form 10B filing was directed to be treated as compliance.

Ratio Decidendi: A marginal delay in statutory filing may be condoned where a pragmatic exercise of discretion is required and the refusal to extend time is found to be perverse in the circumstances.

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