Genuine hardship and liberal condonation support acceptance of delayed Form 10-IC for concessional tax treatment.

Section 119(2)(b) requires a liberal construction of "genuine hardship" where a delayed Form 10-IC filing is bona fide and the assessee is otherwise substantively eligible for the concessional regime under section 115BAA. The delay was said not to be deliberate, concocted, or mala fide, and refusal to condone would deny the lower tax rate and impose a heavier tax burden. On that reasoning, the delay should have been condoned and Form 10-IC accepted for the relevant assessment year.

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Issues: Whether the delay of 53 days in filing Form 10-IC for claiming the benefit under section 115BAA of the Income-tax Act, 1961 was liable to be condoned under section 119(2)(b) on the ground of genuine hardship.

Analysis: The assessee had applied for start-up recognition and sought the eligible business certificate, but the application was rejected shortly before the return-filing due date. After receiving the rejection and taking professional advice, the assessee arranged funds, paid self-assessment tax, and filed Form 10-IC. The delay was not found to be deliberate, concocted, or tainted by mala fides. Refusal to condone the delay resulted in denial of the concessional tax regime under section 115BAA and a substantial tax burden at the normal rate, which constituted financial hardship. The expression "genuine hardship" in section 119(2)(b) was required to be construed liberally, and the authority ought to have exercised its condonation power judiciously to advance substantial justice.

Conclusion: The delay ought to have been condoned under section 119(2)(b), and the rejection of the application was unsustainable; the assessee is entitled to have Form 10-IC accepted for the relevant assessment year.

Ratio Decidendi: The power under section 119(2)(b) to admit a delayed claim must be exercised liberally where the delay is bona fide and refusal would cause genuine hardship, especially when the assessee is otherwise substantively eligible for the relief sought.

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