Condonation of delay in filing Form 10 was justified where professional lapse caused procedural default and no benefit from delay was shown.

Delay in filing Form 10 for Assessment Year 2022-23 was condonable under Section 119(2)(b) where the default arose from the compliance failure of the professional engaged by the assessee, supported by affidavit, and no benefit from the delay was shown. The prior acceptance of the explanation for the delayed return of income also supported condonation for Form 10. Refusing relief would have caused grave hardship and an avoidable tax burden for a procedural lapse, so the rejection of condonation was unsustainable.

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Issues: Whether the delay in filing Form 10 for Assessment Year 2022-23 ought to be condoned under Section 119(2)(b) of the Income-tax Act, 1961, and whether the rejection of the application was justified in view of the delayed return of income and Section 13(9)(ii) of the Income-tax Act, 1961.

Analysis: The delay was supported by an affidavit explaining the failure of the professional entrusted with compliance, and the petitioner had no apparent benefit from the delay. The same authority had already accepted the explanation and condoned the delay in filing the return of income, which supported acceptance of the explanation for Form 10 as well. The Court found that refusal of condonation would expose the petitioner to grave hardship and a substantial tax burden for a procedural default in filing Form 10, despite the surrounding circumstances.

Conclusion: The delay in filing Form 10 was liable to be condoned, and the order rejecting condonation was unsustainable.

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