Genuine hardship under section 119(2)(b) can justify condonation for delayed refund claims arising from compulsory acquisition compensation.

Delay in filing a revised return to claim refund of TDS on compensation received for compulsory acquisition of land was required to be condoned under section 119(2)(b) because the compensation was received only after the return due date and the assessee could not include it earlier. The provision is meant to relieve genuine hardship and permit delayed refund claims where the assessee remains otherwise entitled to relief. On the material recorded, the delay was not attributable to the assessee in a manner warranting refusal of condonation, so the order rejecting condonation was unsustainable and was set aside, with a fresh decision directed to process the revised return and refund claim in accordance with law.

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Issues: Whether the delay in filing the revised return to claim refund of TDS deducted on compensation received for compulsory acquisition of land was liable to be condoned under section 119(2)(b) of the Income-tax Act, 1961.

Analysis: The compensation was received only after the due date for filing the return, and the petitioner could not reflect the amount in the original return because the share in the compensation had not been determined earlier. The claim for refund arose from tax deducted on compensation that was treated as not taxable, and the power under section 119(2)(b) is intended to avoid genuine hardship and to enable admission of delayed claims for refund where the assessee is otherwise entitled to relief. The material on record showed that the delay was not attributable to the petitioner in a manner that would justify refusal of condonation.

Conclusion: The delay was required to be condoned and the application rejecting condonation was unsustainable.

Final Conclusion: The impugned order was set aside and the authority was directed to pass a fresh order condoning the delay so that the revised return and refund claim could be processed in accordance with law.

Ratio Decidendi: Where a refund claim arises only after receipt of compensation for compulsory acquisition and the assessee was prevented by circumstances beyond control from including it in the original return, section 119(2)(b) must be applied to remove genuine hardship by permitting delayed filing for refund.

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