Genuine hardship in belated return condonation justified relief where medical treatment caused delay and TDS refund claim was bona fide.

Section 119(2)(b) empowers the tax administration to admit belated claims where genuine hardship is shown, and the governing condonation circular requires a case-specific assessment of reasonable cause. Medical material showed that the working partner was under treatment when the return was delayed, and the authorities failed to properly appreciate that evidence. The claim was also linked to refund of TDS rather than tax evasion. On that basis, the delay was treated as covered by genuine hardship and the rejection order was unsustainable.

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Issues: Whether delay in filing the income-tax return for assessment year 2024-25 was liable to be condoned under Section 119(2)(b) of the Income-tax Act, 1961 on the ground of genuine hardship and whether the rejection order deserved to be quashed.

Analysis: The statutory framework under Section 119(2)(b) empowers the Board or authorised income-tax authority to admit belated claims where genuine hardship is shown. The governing circular on condonation of delay for refund and loss claims required a case-specific assessment of reasonable cause and genuine hardship. The medical material placed on record showed that the working partner was under treatment and the return was delayed for that reason. The Court found that the material was not properly appreciated by the authorities and that the claim was not one of tax evasion but related to refund of TDS.

Conclusion: The delay was held to be covered by genuine hardship, the rejection order was unsustainable, and the writ petitioner succeeded.

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