Condonation of delay for Form 10-IC requires merits-based consideration under Section 119(2)(b) when no applicable circular exists.

Condonation of delay in filing Form 10-IC for Assessment Year 2024-25 under Section 119(2)(b) was examined in light of a CBDT circular that covered only Assessment Years 2020-21, 2021-22 and 2022-23. The Court treated the power under Section 119(2)(b) as a statutory power and held that, where no relevant circular covered the year in question, the application could not be rejected merely for that reason; it had to be considered by the competent authority on merits. The rejection order was quashed and the matter was directed to be reconsidered on a fresh application in accordance with law.

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Issues: Whether the authority was competent to consider condonation of delay in filing Form 10-IC for Assessment Year 2024-25 under Section 119(2)(b) of the Income-tax Act, 1961 despite the circular authorising such condonation for other assessment years.

Analysis: The circular relied upon authorised condonation only for Assessment Years 2020-21, 2021-22 and 2022-23. The Court held that in the absence of a relevant circular for Assessment Year 2024-25, the matter could not be rejected merely on that ground and had to be considered by the competent authority under Section 119(2)(b). The power under the provision was treated as a statutory power, and the rejection without consideration on merits was found unsustainable.

Conclusion: The order rejecting the application was quashed and the matter was directed to be reconsidered on a fresh application by the competent authority in accordance with law.

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