Liberal condonation of delay in Form 10B filing upheld where Covid-19 circumstances and minimal delay justified relief.

Minimal delay in filing Form 10B audit report during the Covid-19 period was held fit for condonation under Section 119(2)(b) of the Income-tax Act, 1961. The refusal order was interfered with because it gave no specific reasons and applied a hyper-technical approach, whereas the circumstances called for a liberal view on procedural compliance. The delay was therefore condoned and the refusal was set aside.

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Issues: Whether the delay in filing the audit report in Form 10B for the assessment year 2021-2022 deserved condonation under Section 119(2)(b) of the Income-tax Act, 1961.

Analysis: The delay was minimal and occurred during the Covid-19 period. The order refusing condonation did not record specific reasons and proceeded on a hyper-technical approach. The circumstances were considered in the light of the liberal principles governing condonation of delay and the broader relaxation approach adopted during the pandemic period.

Conclusion: The delay in filing the audit report was condoned and the refusal order was set aside.

Final Conclusion: The assessee succeeded in securing condonation of the delayed audit report filing, and the writ petition was allowed.

Ratio Decidendi: Where delay in complying with a procedural filing requirement is minimal and arises in exceptional circumstances, a liberal approach to condonation is warranted and a rigid, hyper-technical refusal may be interfered with.

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