Beneficial CBDT circular on delayed form filing applies to genuine hardship cases beyond specified assessment years.

A beneficial CBDT circular issued under Section 119(2)(b) to mitigate genuine hardship was treated as applicable to bona fide cases beyond the assessment years specifically mentioned, where the year restriction had no rational nexus with the relief intended. The Delhi HC noted that Circular No. 17/2024 dated 18.11.2024 empowered the PCIT or Commissioner to condone delay in filing prescribed forms, unlike Circular No. 11/2024, and held that the assessee's delayed filing of Form 10IC could be considered on that basis. The rejection of the condonation application was set aside and the matter remanded for fresh decision in accordance with law.

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Issues: Whether the CBDT circular dated 18.11.2024, issued under Section 119(2)(b) of the Income-tax Act, 1961, permitting condonation of delay in filing prescribed forms, is confined to the assessment years mentioned in the circular or applies to genuine and bona fide cases irrespective of assessment year; and whether the rejection of the assessee's application for condonation of delay in filing Form 10IC was sustainable.

Analysis: The return had been filed within the extended period under Section 139(4) of the Income-tax Act, 1961, but Form 10IC was not furnished by the due date prescribed for filing the return under Section 139(1) of the Income-tax Act, 1961, resulting in delay. Circular No. 11/2024 dated 01.10.2024 was found not to provide condonation for delayed filing of such forms, whereas Circular No. 17/2024 dated 18.11.2024 specifically empowered the PCIT or Commissioner to condone delay in filing prescribed forms. The limitation of the latter circular to specified assessment years was treated as incidental and not as a restriction defeating the object of mitigating genuine hardship. A beneficial circular issued to relieve hardship was held to operate in all genuine and bona fide cases unless the CBDT consciously provides otherwise.

Conclusion: The circular dated 18.11.2024 was held applicable to genuine and bona fide cases irrespective of assessment year, the rejection order was set aside, and the matter was remanded for fresh in accordance with law.

Ratio Decidendi: A beneficial CBDT circular issued to mitigate genuine hardship under Section 119(2)(b) of the Income-tax Act, 1961, is not to be confined narrowly to specified assessment years where no rational nexus exists between the year restriction and the relief intended.

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