2025 (8) TMI 545

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....March 2025 passed by the Respondent No. 1 (Principal Commissioner of Income Tax) under Section 119(2)(b) of the Income Tax Act, 1961 (for short "Act") rejecting Petitioner's Application dated 2nd January 2025, for Condonation of Delay in filing the Return of Income for Assessment Year (for short "A.Y.") 2024 - 25. 3. The brief facts of the case are that the Petitioner is a Partnership Firm engaged in business of construction and development. It is claimed by the Petitioner that it undertook a housing project in A.Y. 2019 - 20 and followed the project completion method of accounting. Thus, no profit was declared from housing project in the Return of Income filed up to A.Y. 2023-24. The Petitioner received a completion certificate in A.Y. 20....

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....ner of Petitioner - Firm and that non - acceptance of the Return of Income will cause genuine hardship to the Petitioner. The Petitioner requested that the delay be condoned and the Petitioner be allowed to file the Return of Income. 6. Pursuant to the same, the Respondents called for certain details including documentary proof in support of the reasons for late filing of the Return. The Petitioner replied to the same furnishing those details and attached several Medical Certificates. Thereafter, an opportunity of hearing was granted to the Petitioner and the Petitioner again furnished an explanation with regards to the delay in filing the Return of Income. 7. Ultimately, the Impugned Order was passed on 13th March 2025 under Section 119(....

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....the claim of deduction at the stage of condonation of delay. The same would be subjected to examination by the authorities during assessment which would commence only if Petitioner's Return of Income is accepted. Therefore, this reason for rejection is also unsustainable. If the delay is not condoned, there will be genuine hardship caused to the Petitioner inasmuch as the Petitioner would be unable to even claim the deduction under Section 80 IBA of the Act, which is a substantial amount. While interpreting what would constitute 'genuine hardship', this aspect is also to be borne in mind. This view is supported by a decision rendered by a co-ordinate bench of this Court in K. S. Bilawala vs. Principal Commissioner of Income-tax [2024] 158 t....