Condonation of Delay under Section 119(2)(b): bona fide pandemic-related short delays warrant liberal discretion to prevent hardship.

Condonation of a 113 day delay in acceptance/verification of Form No.10B is considered under the discretionary power in Section 119(2)(b); the article explains that where delay is short, bona fide, and caused by pandemic-related disruptions and inadvertence, hardship from refusal (including loss of exemption under income tax law) justifies liberal exercise of discretion. It summarises reasoning that timely audit report filing, COVID-19 lockdowns, preponement of due dates, and comparable precedents support condonation to advance substantial justice, and states the operative effect that the delayed filing should be treated as filed within time and processed accordingly.

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Issues: Whether the delay of 113 days in acceptance/verification of Form No.10B for A.Y.2020-21 should be condoned under Section 119(2)(b) of the Income-tax Act, 1961, and whether the impugned order dated 11.02.2025 rejecting the condonation application should be quashed and set aside.

Analysis: The delay is a short period of 113 days and occurred in the context of COVID-19 disruptions including lockdowns and extensions of compliance dates. The audit report was filed by the auditor within time and the acceptance/verification lapse arose from inadvertence by an elderly managing trustee working from home. Preponement of the due date for filing Form No.10B for A.Y.2020-21 contributed to confusion, and time extensions granted during the pandemic are relevant background. Consideration of hardship is a relevant factor under Section 119(2)(b); refusal to condone would result in denial of exemption under Section 11 and a substantial demand. Previously decided judgments at the same court and comparable authorities support a justice-oriented, liberal exercise of discretion where delay is bona fide and genuine hardship would follow.

Conclusion: The impugned order dated 11.02.2025 is quashed and set aside; the delay of 113 days in filing/acceptance of Form No.10B for A.Y.2020-21 is condoned and the return shall be processed as filed within time. The decision is in favour of the assessee.

Ratio Decidendi: The discretionary power under Section 119(2)(b) of the Income-tax Act, 1961 to condone delay must be exercised to advance substantial justice where a bona fide short delay is shown and genuine hardship would result from refusal.

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