Condonation of delayed Form 10B filing may follow where sufficient cause and genuine hardship are demonstrated.

Section 119(2)(b) permits condonation of a delayed Form 10B audit report where sufficient cause and genuine hardship are established, and does not itself prescribe a limitation period for seeking condonation. The notes state that medical records, age, and filing the audit reports shortly after the returns supported sufficient cause, although the taxpayer bore some responsibility and costs were imposed. They also note that revenue authorities remain bound by the CBDT circular prescribing a time limit. The reported outcome was condonation of the filing delay for claiming exemption.

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Issues: Whether the delay in filing audit reports in Form 10B for claiming exemption for the relevant assessment years should be condoned under Section 119(2)(b) of the Income-tax Act, 1961.

Analysis: Section 119(2)(b) does not itself prescribe a period for seeking condonation and empowers the authorities to admit a belated claim to avoid genuine hardship. Although the revenue authorities were bound by the CBDT circular prescribing a time limit, the petitioner established sufficient cause through medical records, age and the fact that the audit reports were filed only a few days after the returns. The petitioner was not entirely free from responsibility, warranting imposition of costs.

Conclusion: The delay in filing Form 10B was condoned, in favour of the assessee.

Ratio Decidendi: A belated claim may be condoned under Section 119(2)(b) where the facts establish sufficient cause and genuine hardship, notwithstanding that the provision itself fixes no limitation period.

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