TaxTMI 
TaxTMI 
2025 (5) TMI 1500
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....g to invoke extraordinary jurisdiction under Article 226/227 of the Constitution of India with the following prayer(s): "In view of the above circumstances, it is most respectfully prayed that this Hon'ble Court may graciously be pleased to: a) Admit the Writ application; b) Issue a writ in the nature of Certiorari or any other appropriate writ, Order or direction, calling for the records of the Petitioner's case and after going into the legality and propriety thereof to: i. quash and set aside the impugned order of rejection dated 17.02.2025 under Annexure-1 passed by the opposite party No.2; ii. quash and set aside the impugned intimation/order under Section 143(1) of the Income Tax At, 1961 dated 30.11.2021 under Annexure-2 passed by the opposite party No.3; and iii. condone the delay in filing the Audit Report (Form 10B) under Annexure-3 Series for the Assessment Year 2020-21. c) And if the opposite parties fail to show cause or sufficient cause, then the rule may be made absolute; d) And further your Lordships may please to pass such other order/orders as your Lordships may deem fit and proper; ....
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....ritable Society is entitled to claim exemption under Section 12A of the IT Act, the Department while processing the return of income, such claim of exemption was disallowed on the ground that the Audit Report was not filed within the period specified under the statute, as a result of which demand to the tune of Rs.22,01,930/- was raised by issuing intimation dated 30.11.2021 under Section 143 (Annexure-2). 2.4. Citing such bona fide reason preventing the petitioner from filing the Audit Report on or before 15.02.2021, it is stated that the delay of seventy-six days in filing said Audit Report in Form 10B should have been ignored. Hence, the petitioner on 03.12.2024 filed an application before the Commissioner of Income Tax (Exemption), Hyderabad-opposite party No.2 under Section 119(2)(b) of the IT Act with prayer to condone the delay in filing such Audit Report. In furtherance thereof, on the information being sought for by the Department, vide notice dated 05.12.2024, compliance was made on 18.12.2024. Nevertheless, the opposite party No.2 without affording opportunity to the petitioner rejected the application for condonation of....
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....1.2022 of the Hon'ble Supreme Court of India vide Annexure-9. ii. The decision rendered by the Delhi High Court could not have been relied on to reject the application for condonation of delay inasmuch as no detail has been provided by the concerned Authority in the order. To illustrate, the date of Judgment is not available nor the reference of its reporting. As it seems the said referred Judgment does not relate to situation like the present one. iii. The decisions of Supreme Court in Ranka Vrs. Rewa Coalfields Ltd., AIR 1962 SC 361 and Madras High Court in the case of Madhu Dadha Vrs. ACIT, 317 ITR 458 have been referred to by the Authority to say that each day's delay needed to be explained and the delay could be allowed on "genuine hardship". The ratio of said judgments has not been appropriately applied inasmuch as the Hon'ble Supreme Court in its Order dated 10.01.2022 rendered in Miscellaneous Application No.21 of 2022 in Miscellaneous Application No.665 of 2021 in Suo Motu Writ Petition (C) No.3 of 2020 acknowledged plight of litigants and issued directions granting 90 days' from 01.03.2022 for compliance of statutory requirement. He placed relia....
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....cious of the fact that Circular No.9/2015, dated 09.06.2015 has been superseded by virtue of Circular 16/2024 [F. No.197/639/2024-ITA-I] dated 18.11.2024, the impugned rejection order cannot be sustained in the eye of law. 5. Sri Avinash Kedia, learned Junior Standing Counsel appearing for the Department-opposite parties strongly opposed the contention of the learned counsel for the petitioner and sought to justify the reason assigned by the Commissioner of Income Tax (Exemption). 5.1. He strenuously argued in favour of the Department to contend that time schedule specified under the IT Act and rules framed thereunder is sacrosanct and there cannot be any deviation therefrom without extension granted under proper notification/circular. The petitioner cannot be allowed to file documents at his sweet wish. The petitioner was conscious and had knowledge about the compliance of statutory requirement within the time frame, failing which the claim for exemption would get rejected. The Commissioner of Income Tax (Exemption) did reject the claim having regard to instructions and decisions on the subject. 5.2. Having applied his mind rationally, ....
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....d manner to the Principal Commissioner or Commissioner and such trust or institution is registered under Section 12AA; (ab) the person in receipt of the income has made an application for registration of the trust or institution, in a case where a trust or an institution has been granted registration under Section 12AA or has obtained registration at any time under Section 12A [as it stood before its amendment by the Finance (No. 2) Act, 1996 (33 of 1996)], and, subsequently, it has adopted or undertaken modifications of the objects which do not conform to the conditions of registration, in the prescribed form and manner, within a period of thirty days from the date of said adoption or modification, to the Principal Commissioner or Commissioner and such trust or institution is registered under Section 12AA; (b) where the total income of the trust or institution as computed under this Act without giving effect to the provisions of Section 11 and Section 12 exceeds the maximum amount which is not chargeable to income-tax in any previous year, the accounts of the trust or institution for that year have been audited by an accountant....
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....such orders, instructions or directions shall be issued- (a) so as to require any income-tax authority to make a particular assessment or to dispose of a particular case in a particular manner; or (b) so as to interfere with the discretion of the Commissioner (Appeals) in the exercise of his appellate functions. (2) Without prejudice to the generality of the foregoing power,- (a) the Board may, if it considers it necessary or expedient so to do, for the purpose of proper and efficient management of the work of assessment and collection of revenue, issue, from time to time (whether by way of relaxation of any of the provisions of sections 115P, 115S, 115WD, 115WE, 115WF, 115WG, 115WH, 115WJ, 115WK, 139, 143, 144, 147, 148, 154, 155, 158BFA, sub-section (1A) of Section 201, sections 210, 211, 234A, 234B, 234C, 234E, 270A, 271, 271C, 271CA and 273 or otherwise), general or special orders in respect of any class of incomes or fringe benefits or class of cases, setting forth directions or instructions (not being prejudicial to assessees) as to the guideline....
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....or claim for exemption, deduction, refund or any other relief even after the expiry of the period specified to make such claim or such application. By condoning the delay the same could be dealt with on merit. 7.1. Such power is apparently hedged with condition to consider "genuine hardship". Thus it is unambiguous that in case of genuine hardship faced by the assessee, the Commissioner of Income Tax is authorised to consider application after expiry of the period specified for filing Audit Report in Form 10B in terms of Section 12A read with Rule 17B. 7.2. Citing pandemic situation and extension of period of limitation by the Hon'ble Supreme Court exercising suo motu power with respect to general and special laws for compliance of statutory requirement by litigants in view of difficulty faced by them due to shutdown imposed by the Government, the petitioner approached the Authority concerned by making an application dated 03.12.2024 with a prayer to condone the delay in filing the Audit Report in Form 10B along with return of income under Section 139 of the IT Act. It is also apprised by the petitioner before the Commissioner of Income Tax that due to this pandemic situation....
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....ibunals within their respective jurisdiction.' 10. This Court considering gravity of situation, vide Order dated May 5, 2020 in the matter of Bijaya Kumar Ragada Vrs. State of Odisha, W. P. (C) No. 9095 of 2020, observed as follows: '2. Lock-down phase 3.0 throughout the country for two weeks with effect from May 4, 2020 is in currency now. Novel Corona Virus (COVID- 19) has infected more than 46,000 persons so far across the country. The virus, Novel as it is, in absence of vaccine and medication to arrest its spread, declares with pride 'Hide from me to be safe' and 'Keep distance from my carrier to be alive'. The honourable Prime Minister of India and honourable Chief Minister of our State have taken well conceived, well thought of, justly considered, tough and hard steps to contain the crisis arising out of the virus. 3. Staying at home to be safe and maintaining social distance are the only ways to check spread of the virus. India countries cross sections of people of various religion, faith, cast, creed and colour. Law abidingness, however, has never been a natural habit of a part of the population. Irresponsibility is writ large when it comes....
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...., in exercise of our power under articles 226 and 227 of the Constitution of India read with sections 482 and 483, Cr.P.C. and Section 151 of the Code of Civil Procedure, we issue the following directions to at least contain the plight of the litigants and non-litigants. *** (xi) That it is further directed that if the Government of Odisha and/or any of its Department and/or functionaries, Central Government and/or its Departments or functionaries or any public sector undertakings or any public or private companies or any firm or any individual or person is/are, by the order of this court or any court subordinate to it or the Tribunals, required to do a particular thing or carry out certain direction in a particular manner in a time frame, which expired or is going to expire at any time, during the period of lock down or the extended lock down, time for compliance of such order shall stand extended up to 18th June 2020, unless specifically directed otherwise.' ***" Aforesaid arrangement made vide Order dated May 5, 2020 in Bijaya Kumar Ragada Vrs. State of Odisha, W.P.(C) No. 9095 of 2020 was being extended on various dates and vide order dated November 1....
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.....' 13. The afore-mentioned attached document to the Letter of the Commissionerate of CT&GST, being File No. CBIC-20006/10/2021, dated July 20, 2021 of the Government of India, Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs, GST Policy Wing clarified as follows : '*** 2.1 The extract of the honourable Supreme order dated 27th April 2021 is reproduced below for reference : 'We, therefore, restore the order dated March 23, 2020 and in continuation of the order dated March 8, 2021 direct that the period(s) of limitation, as prescribed under any general or special laws in respect of all judicial or quasi- judicial proceedings, whether condonable or not, shall stand extended till further orders. It is further clarified that the period from March 14, 2021 till further orders shall also stand excluded in computing the periods prescribed under sections 23(4) and 29A of the Arbitration and Conciliation Act, 1996, Section 12A of the Commercial Courts Act, 2015 and provisos (b) and (c) of Section 138 of the Negotiable Instruments Act, 1881 and any other laws, which prescribe period(s) of limitation for instituting pro....
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....needs to be pursued within a time frame fixed by the respective statutes. (iv) Wherever proceedings are pending, judicial or quasi-judicial which requires to be heard and disposed off, cannot come to a standstill by virtue of these extension orders. Those cases need to be adjudicated or disposed off either physically or through the virtual mode based on the prevailing policies and practices besides instructions if any. (v) The following actions such as scrutiny of returns, issuance of summons, search, enquiry or investigations and even consequential arrest in accordance with GST law would not be covered by the judgment of the honourable Supreme Court. (vi) As regards issuance of show-cause notice, granting time for replies and passing orders, the present orders of the honourable Supreme Court may not cover them even though they are quasi-judicial proceedings as the same has only been made applicable to matters relating to petitions/applications/suits, etc. 4. On the basis of the legal opinion, it is hereby clarified that various actions/compliances under GST can be broadly categorised as follows : (a) Proceedings that need to be initiate....
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....n was not in place. However, conceiving the gravity of circumstances that prevailed over entire world and visualizing insurmountable difficulties faced by human beings, new provisions by way of amendment to the OGST Act have been inserted in tune with the provisions of the Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020 and the Taxation and other Laws (Relaxation of Certain Provisions) Act, 2020. Section 168A thereof was first inserted with effect from March 31, 2020 by way of promulgation of the Odisha Goods and Services Tax (Amendment) Ordinance, 2020 (Odisha Ordinance No. 5 of 2020) by the Governor of Odisha on June 9, 2020 vide Law Department Notification No. 5278-I-Legis-22/2020/L, dated June 11, 2020, published in the Odisha Gazette Extraordinary No. 856, dated June 11, 2020 and subsequently the same has been enacted as the Odisha Goods and Services Tax (Amendment) Act, 2020 (Odisha Act 5 of 2020) and was given effect from March 31, 2020. 16. As noticed above the Central Government as also the State Government in line with the judgment of the honourable Supreme Court have issued orders/ notifications/circ....
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....ning, all persons shall have a limitation period of 90 days from March 15, 2021. In the event the actual balance period of limitation remaining, with effect from March 15, 2021, is greater than 90 days, that longer period shall apply. 2.3. The period from March 15, 2020 till March 14, 2021 shall also stand excluded in computing the periods prescribed under sections 23(4) and 29A of the Arbitration and Conciliation Act, 1996, Section 12A of the Commercial Courts Act, 2015 and provisos (b) and (c) of Section 138 of the Negotiable Instruments Act, 1881 and any other laws, which prescribe period(s) of limitation for instituting proceedings, outer- limits (within which the court or Tribunal can condone delay) and termination of proceedings. 2.4. The Government of India shall amend the guidelines for containment zones, to state : 'Regulated movement will be allowed for medical emergencies, provision of essential goods and services, and other necessary functions, such as, time bound applications, including for legal purposes, and educational and job-related requirements.' ***" 7.4. In Atlas PVC Pipes Limited Vrs. State of Odisha, (2022) 106 GSTR 433 (Ori) = 2....
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....ch cannot be said to be extraordinary.' 6.4. In this context this court also takes note of the decision vide Order dated June 10, 2021 passed in Shree Udyog Vrs. Commissioner of State Tax, (2022) 106 GSTR 414 (Orissa), (W.P.(C) No. 14887 of 2021), which is in similitude with that of Shree Jagannath Traders (2021) 94 GSTR 46 (Orissa). 6.5. It is ex facie clear from the copy of memo of appeal in form GST APL-01 vide annexure 2 series to the writ petition that having received the Order passed under Section 74 of the OGST Act on January 20, 2021, the petitioner filed the appeal invoking Section 107 on April 21, 2021. The statutory prescribed period for preferring appeal fell within the extended period in consonance with Finance Department Notification bearing No. 13898-FIN-CT1-TAX- 0002/2020 (SRO No. 129/2021), dated May 7, 2021 issued in exercise of powers under Section 168A of the OGST Act read with judgment(s)/order(s) of the honourable Supreme Court rendered in the case of In Re : Cognizance for Extension of Limitation, SMW(C) No. 3 of 2020. 6.6. It may be worthwhile to reiterate what has been noticed in the case of Smt. Basanti Shial v. Proper Officer, A....
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....gs before the Courts/ Tribunals including this court with effect from March 15, 2020 till October 2, 2021. 4. The present miscellaneous application has been filed by the Supreme Court Advocates-on Record Association in the context of the spread of the new variant of the COVID-19 and the drastic surge in the number of COVID cases across the country. Considering the prevailing conditions, the applicants are seeking the following: (i) allow the present application by restoring the order dated March 23, 2020 passed by this honourable court in Suo Motu Writ Petition (C) No. 3 of 2020; and (ii) allow the present application by restoring the order dated April 27, 2021 (Cognizance for Extension of Limitation, In re (2021) 226 Comp Cas 127 (SC)), passed by this honourable court in M. A. No. 665 of 2021 in Suo Motu Writ Petition (C)No. 3 of 2020; and (iii) pass such other order or orders as this honourable court may deem fit and proper. 5. Taking into consideration the arguments advanced by learned counsel and the impact of the surge of the virus on public health and adversities faced by litigants in the prevailing conditions, we deem it appropria....
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....ranted by the honourable Supreme Court in the order dated January 10, 2022." 7.5. The Hon'ble Supreme Court was pleased to clarify the position in the Order dated 9th May, 2022 vide Babasaheb Raosaheb Kobarne Vrs. Pyrotek India Private Limited, 2022 LiveLaw (SC) 520 = 2022 SCC OnLine SC 1315, which is to the following effect: "4. Having heard the learned counsel appearing on behalf of the respective parties and having considered order dated 10.01.2022 passed by this Court in Miscellaneous Application No. 21/2022 by which the following order was passed and order dated 04.01.2022 passed by this Court in SLP (C) No. 17298/2021 in the case of Centaur Pharmaceuticals Pvt. Ltd. Vrs. Standford Laboratories Pvt. Ltd., the impugned order passed by the High Court is unsustainable. The operative portion of the order passed by this Court in Miscellaneous Application No. 21/2022 reads as under: *** 5. In that view of the matter, the period from 15.03.2020 till 28.02.2022 shall have to be excluded for the purposes of limitation as may be prescribed under any General or Special Laws in respect of all judicial or quasi-judicial proceedings. The Commercial Courts Act, 2015 bein....
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....ed to be issued by fraudulent misrepresentation, they were liable to be confiscated under Section 167(8) of the Sea Customs Act.' Section 167(8) of the Sea Customs Act can be invoked only if an order issued under Section 3 of the Act was infringed during the course of the import or export. The Division Bench of the High Court held that a contravention of a condition imposed by a licence issued under the Act is not an offence under Section 5 of the Act. This raises the question whether an Administrative Tribunal can ignore the law declared by the highest court in the State and initiate proceedings in direct violation of the law so declared. Under Article 215, every High Court shall be a court of record and shall have all the powers of such a court including the power to punish for contempt of itself. Under Article 226, it has a plenary power to issue orders or writs for the enforcement of the fundamental rights and for any other purpose to any person or authority, including in appropriate cases any Government, within its territorial jurisdiction. Under Article 227 it has jurisdiction over all courts and tribunals throughout the territories in relation to which it exercises ....
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.... Board. A condonation application should be disposed of within six months from the end of the month in which the application is received by the competent authority, as far as possible." 8.1. Be that as it may, said Circular has been "superseded" by virtue of Circular No.16/2024 [F. No.197/639/2024- ITA-I], dated 18.11.2024 issued by the Central Board of Direct Taxes, which reads as follows: "In supersession of all earlier Circulars/ Instructions issued by the Central Board of Direct Taxes ('CBDT') from time to time to deal with the applications for condonation of delay in filing Form 9A/10/10B/10BB for Assessment Year 2018-19 and subsequent Assessment Years, the CBDT in exercise of the powers conferred under Section 119(2)(b) of the Income Tax Act ('the Act'), authorizes:- 1.1. the Pr. Commissioner of Income Tax ('Pr.CsIT')/ Commissioners of Income Tax ('CsIT') to admit and deal with applications for condonation of delay in filing Form No.9A/10/10B/10BB for Assessment Year 2018-19 and subsequent Assessment Years where there is a delay of upto 365 days. 1.2. the Pr. Chief Commissioners of Income Tax ('Pr. CsIT')/ Chief Commissioner of Income Tax ('CsIT'....
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....rtained beyond three years from the end of the Assessment Year for which such application is made and the time limit for filing of such application within three years from the end of the Assessment Year will be applicable for application filed on or after the date of issue of the Circular. 8.3. It is not in dispute that the petitioner was required to submit the Audit Report in Form 10B pertaining to the Assessment Year 2020-21 on or before 15.01.2021. The end of said Assessment Year is 31.03.2021. Said application being filed with a delay of seventy-six days, in view of paragraph 1.1 read with paragraph 4 of aforementioned Circular the Commissioner of Income Tax is the competent authority to consider the merit of application for condonation of delay in filing Audit Report and in terms of paragraph 3 of Circular dated 18.11.2024 three years period of limitation would lapse on 31.03.2024. 8.4. Despite the fact that the petitioner demonstrated the COVID-19 pandemic prevailed during 2020-22, which is apparent from the decisions cited supra as "reasonable cause" that prevented it from complying with the statutory requirement and by virtue of intervention of the Hon'ble Supreme Cou....
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....tion that subordinate authorities are bound to acquaint themselves with the decisions of this Court and in case these authorities are not followed, in appropriate cases they are liable to be proceeded with for contempt." 8.6. This Court in State of Odisha Vrs. Sreepati Ranjan Dash, 2023 SCC OnLine Ori 6207 having taken cognizance of effect of the word "supersession" found place in a legal document, observed as follows: "53. The word "supersede" in law, vide Black's Law Dictionary, 5th Edition, as referred to in Calcutta Municipal Corporation Vrs. Pawan Kumar Saraf, (1999) 2 SCC 400 = (1999) 1 SCR 74, means "obliterate, set aside, annul, replace, make void or inefficacious or useless, repeal". The purport of "supersession" has been succinctly explained in Union of India Vrs. Glaxo India Ltd., (2011) 6 SCC 668 = (2011) 4 SCR 50: "39. The impugned notification uses the expression "supersession" of the earlier notification. Therefore, the first question that requires to be considered and answered by us is, what is the meaning of the expression 'supersession' and what is its effect. Webster's Third New Internatio....
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....upersession" can well be deduced from the following dicta of the Hon'ble Supreme Court of India in the case of State of Maharashtra Vrs. Central Provinces Manganese Ore Co. Ltd., (1977) 1 SCC 643 = (1977) 39 STC 340 (SC): 'The following passage was also cited from Koteswar Koteswar Vittal Kamath Vrs. K. Rangappa Balica & Co., (1969) 1 SCC 255 = AIR 1969 SC 504 (at page 509) = (1969) 3 SCR 40 (at p. 47): 'Learned counsel for the respondent, however, urged that the Prohibition Order of 1119 cannot, in any case, be held to have continued after 8 March, 1950, if the principle laid down by this Court in Firm A.T.B. Mehtab Majid & Co. Vrs. State of Madras, 1963 Supp (2) SCR 435 = AIR 1963 SC 928 is applied. In that case, Rule 16 of the Madras General Sales Tax (Turnover and Assessment) Rules, 1939, was impugned. A new Rule 16 was substituted for the old Rule 16 by publication on September 7, 1955, and this new rule was to be effective from 1 April, 1955. The Court held that the new Rule 16(2) was invalid because the provisions of that rule contravened the provisions of Article 304(a) of the Constitution. Thereupon, it was urged before the Court that, if the impugned rul....
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....hich prevailed in Koteswar's case (supra) where a distinction was drawn between a 'substitution' and 'supersession'. It is true that, as the term substitution was not used there, the old rule was not held to have been repealed. Nevertheless, the real basis of that decision was that what was called supersession was void ab initio so that the law remained what it would have been if no such legislative process had taken place at all. It was held that the void and inoperative legislative process did not affect the validity of the pre-existing rule. And, this is precisely what is contended or by the State before us.' ***" 8.7. There is no doubt that "everyday of delay needs to be explained with cogent evidences" as per reference made by the Commissioner of Income Tax to Ranka Vrs. Rewa Coalfields Ltd., AIR 1962 SC 362, nevertheless, instead of pedantic approach, pragmatic approach is preferred in the context of consideration of condonation of delay. It requires no evidence when the Hon'ble Supreme Court as also this Court recognized the insurmountable difficulties faced by litigants during the COVID pandemic during 2020-22. Thus, the Order dated 17.02.2025 of the Commissioner of Inco....
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....nds' means something more than prima facie grounds. It contemplates substantial probable causes for believing that the fact exists. The reasonable belief contemplates existence of such facts and circumstances as are sufficient in themselves to justify satisfaction of the authority. [Vide, Collector of Customs Vrs. Ahmadalieva Nodira, (2004) 3 SCC 549]. 8.12. In B.M. Malani Vrs. CIT, (2008) 10 SCC 617 = (2008) 306 ITR 196 (SC) the term "genuine hardship" has been explained in the following manner: "16. The term "genuine" as per the New Collins Concise English Dictionary is defined as under: 'GENUINE means not fake or counterfeit, real, not pretending (not bogus or merely a ruse).' 17. For interpretation of the aforementioned provision, the principle of purposive construction should be resorted to. Levy of interest is statutory in nature, inter alia, for recompensating the Revenue from loss suffered by non-deposit of tax by the assessee within the time specified therefor. The said principle should also be applied for the purpose of determining as to whether any hardship had been caused or not. A genuine hardship would, inter alia, mean a genuine difficul....
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....oner and delay in claiming the relief was not satisfactorily explained, more particularly when the returns could not be filed in time due to the ill health of the officer who was looking after the taxation matters of the petitioner.' The Madras High Court in the case of R. Seshammal Vrs. ITO, (1999) 237 ITR 185, was pleased to observe as under (page 187) : 'This is hardly the manner in which the State is expected to deal with the citizens, who in their anxiety to comply with all the requirements of the Act pay monies as advance tax to the State, even though the monies were not actually required to be paid by them and thereafter seek refund of the monies so paid by mistake after the proceedings under the Act are dropped by the authorities concerned. The State is not entitled to plead the hypertechnical plea of limitation in such a situation to avoid return of the amounts. Section 119 of the Act vests ample power in the Board to render justice in such a situation. The Board has acted arbitrarily in rejecting the petitioner's request for refund.' 15. The phrase "genuine hardship" used in Section 119(2)(b) should have been construed liberally even when the pe....
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....ich reads as under (para 5, page 768 of 463 ITR): '4. There cannot be a straitjacket formula to determine what is genuine hardship. In our view, certainly the fact that an assessee feels he has paid more tax than what he was liable to pay will certainly cause hardship and that will be certainly a 'genuine hardship'. This court in Optra Health Pvt. Ltd. Vrs. Addl. CIT, (2024) 462 ITR 238 (Bom); 2023 SCC OnLine Bom 2843 = Writ Petition No. 15544 of 2023 dated December 19, 2023. In paragraph Nos. 9 and 10 held as under (page 241 of 462 ITR): '9. While considering the genuine hardship, the Principal Chief Commissioner of Income-tax was not expected to consider a solitary ground as to whether the assessee was prevented by any substantial cause from filing the corrections within a due time. Other factors also ought to have been taken into account. The phrase "genuine hardship" used in Section 119(2)(b) of the Act should have been construed liberally. The Legislature has conferred the power to condone the delay to enable the authorities to do substantial justice to the parties by disposing of the matters on merits. The expression "genuine" has received a liberal meaning ....
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....Co. Ltd. Vrs. CIT, (2002) 255 ITR 396 (Guj) = 2001 SCC OnLine Guj 331, was pleased to hold as under (headnote): 'The Board was not justified in rejecting the claim for refund on the ground that a case of genuine hardship was not made out by the petitioner and delay in claiming the relief was not satisfactorily explained, more particularly when the returns could not be filed in time due to the ill health of the officer who was looking after the taxation matters of the petitioner.' The Madras High Court in the case of R. Seshammal Vrs. ITO, (1999) 237 ITR 185 (Mad) = 1998 SCC OnLine Mad 951, was pleased to observe as under (page 187 of 237 ITR): 'This is hardly the manner in which the State is expected to deal with the citizens, who in their anxiety to comply with all the requirements of the Act pay monies as advance tax to the State, even though the monies were not actually required to be paid by them and thereafter, seek refund of the monies so paid by mistake after the proceedings under the Act are dropped by the authorities concerned. The State is not entitled to plead the hypertechnical plea of limitation in such a situati....
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.... is not bound to fail by virtue of some apparent defect. At this stage, the authority is not expected to go deep into the niceties of law. While determining whether refund claim is correct and genuine, the relevant consideration is whether on the evidence led, it was possible to arrive at the conclusion in question and not whether that was the only conclusion which could be arrived at on that evidence. 17. Having said so, turning to the facts of the matter giving rise to the present petition, we are satisfied that respondent No. 1 did not consider the prayer for condonation of delay in its proper perspective. As such, it needs consideration afresh.' 10. This was followed by this court in Artist Tree (P.) Ltd. Vrs. CBDT, (2014) 369 ITR 691 (Bom) = 2014 SCC OnLine Bom 1801 = (2014) 52 taxmann.com 152 (Bom) relied upon by Mr. Walve, where paragraph Nos.19, 21 and 23 read as under (page 701 of 369 ITR): '19. The circumstance that the accounts were duly audited way back on September 14, 1997, is not a circumstance that can be held against the petitioner. This circumstance, on the contrary adds force to the explanation furnished by the petitioner that the delay....
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....g Audit Report in Form 10B was "force majeure"- Covid-19 pandemic. 8.17. This Court is not oblivious of the clarification of the Central Government to treat COVID-19 pandemic as force majeure. The issue of Office Memorandum bearing No.F.18/4/2020-PPD, dated 19.02.2020 is sufficient indicator for necessity to invoke force majeure clause. The Office Memorandum stands thus: "No.F.18/4/2020-PPD Government of India Ministry of Finance Department of Expenditure Procurement Policy Division Room No.512, Lok Nayak Bhavan, New Delhi dated the 19th February, 2020. Office Memorandum Subject: Force Majeure Clause (FMC) Attention is invited to para 9.7.7 of the 'Manual for Procurement of Goods, 2017' issued by this Department, which is reproduced as under: A Force Majeure (FM) means extraordinary events or circumstance beyond human control such as an event described as an act of God (like a natural calamity) or events such as a war, strike, riots, crimes (but not including negligence or wrong-doing, predictable! seasonal rain and any other events specifically excluded in the clause). An FM clause i....
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....en if this be the meaning, it is obvious that the condition about "force majeure" in the agreement was not vague. The use of the word "usual" makes all the difference, and the meaning of the condition may be made certain by evidence about a force majeure clause, which was in contemplation of parties." 8.19. It may be apt to refer to Sections 2 and 2A of the Epidemic Diseases Act, 1897, provisions of which stand as follows: "2. Power to take special measures and prescribe regulations as to dangerous epidemic disease.- (1) When at any time the State Government is satisfied that the State or any part thereof is visited by, or threatened with, an outbreak of any dangerous epidemic disease, the State Government, if it thinks that the ordinary provisions of the law for the time being in force are insufficient for the purpose, may take, or require or empower any person to take, such measures and, by public notice, prescribe such temporary regulations to be observed by the public or by any person or class of persons as it shall deem necessary to prevent the outbreak of such disease or the spread thereof, and may determine in what manner and by whom any expenses incurre....
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.... contained in the Code of Criminal Procedure, 1973 (2 of 1974),- (i) an offence punishable under sub-section (2) or sub-section (3) of Section 3 shall be cognizable and non-bailable; (ii) any case registered under sub-section (2) or sub-section (3) of Section 3 shall be investigated by a police officer not below the rank of Inspector; (iii) investigation of a case under sub-section (2) or sub-section (3) of Section 3 shall be completed within a period of thirty days from the date of registration of the First Information Report; (iv) in every inquiry or trial of a case under sub- section (2) or sub-section (3) of Section 3, the proceedings shall be held as expeditiously as possible, and in particular, when the examination of witnesses has once begun, the same shall be continued from day to day until all the witnessed in attendance have been examined, unless the Court finds the adjournment of the same beyond the following day to be necessary for reasons to be recorded, and an endeavor shall be made to ensure that the inquiry or trial is concluded within a period of one year: Provided that where the trial is not concluded within the said pe....
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.... by the National Authority and State Authority; (e) give direction to the concerned Department of the Government of the State, any District Authority or other authority, within the local limits of the State to take such measure or steps for rescue, evacuation or providing immediate relief saving lives or property, as may be necessary in its opinion; (f) require any department of the Government of the State or any other body or authority or person in charge of any relevant resources to make available the resources for the purposes of emergency response, rescue and relief; (g) require experts and consultants in the field of disasters to provide advice and assistance for rescue and relief; (h) procure exclusive or preferential use of amenities from any authority or person as and when required; (i) construct temporary bridges or other necessary structures and demolish unsafe structures which may be hazardous to public; (j) ensure that non-governmental organisations carry out their activities in an equitable and non discriminatory manner; (k) disseminate information to public to deal with any threatening disaster situation o....
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....chever is later; b) Objections to Dispute Resolution Panel (DRP) under Section 144C of the Income-tax Act, 1961, for which the last date of filing under that Section is 1st April 2021 or thereafter, may be filed within the time provided under that Section or by 31st May 2021, whichever is later; c) Income-tax return in response to notice under Section 148 of the Income-tax Act, 1961, for which the last date of filing of return of income under the said notice is 1st April 2021 or thereafter, may be filed within the time allowed under that notice or by 31st May 2021, whichever is later; d) Filing of belated return under sub-section (4) and revised return under sub-section (5) of Section 139 of the Income-tax Act,1961 for Assessment Year 2020-21, which was required to be filed on or before 31st March 2021, may be filed on or before 31st May 2021; e) Payment of tax deducted under Section 194-IA, Section 194-IB and Section 194M of the Income-tax Act, 1961 and filing of challan-cum-statement for such tax deducted, which are required to be paid and furnished by 30th April 2021 under Rule 30 of the Income-tax Rules, 1962, may be paid and furnished on or ....
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....scussed hereinabove. Having not perceived the genuine hardship of the petitioner in right earnest, the Commissioner of Income Tax (Exemptions) appears not to have applied his conscientious discretion to the fact- situation of the matter. 9.2. Considering the reasons assigned by the petitioner which prevented it from complying with statutory requirement, the Order dated 17.02.2025 passed by the Commissioner of Income Tax is liable to be set aside. 10. Ergo, finding that there was "genuine hardship" faced by the petitioner during the relevant period and the refusal to condoning the delay invoking power under Section 119(2) of the IT Act being arbitrary exercise of discretion to the fact-situation, Order dated 17.02.2025 passed by the Commissioner of Income Tax (Exemption), Hyderabad-opposite party No.2 (Annexure-1) is hereby set aside. 10.1. In consequence thereof, the Commissioner of Income Tax (Exemptions)-opposite party No.2 is directed to grant all consequential relief to the petitioner by taking into account the Audit Report in Form 10B pertaining to the Assessment Year 2020-21 submitted on 31.03.2021, as if the same is filed within p....