TaxTMI 
TaxTMI 
2026 (3) TMI 1032
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.... the Assessment Year for which such Application is made. The Circular also makes it clear that this time limit would apply for any Applications that are filed on or after the date of the Circular, namely, 18th November 2024. The CIT (Exemptions) dismissed the Application filed by the Petitioner under Section 119(2)(b) of the I. T. Act relying upon this Circular because admittedly, the application seeking condonation of delay was filed after 18th November 2024 and was beyond the period of three years from the end of the Assessment Year in question. The second challenge laid in the above Petition is to paragraph 3 of the Circular itself, which mandates that no Application for condonation of delay shall be entertained if it is beyond the period of three years from the end of the Assessment Year in question. 3. The Petitioner is a trust that operates in Rural Development, Irrigation Setup and is registered under the Bombay Public Trust Act, 1950. The Petitioner has been carrying out Drought Reduction activities since 1997. It is registered under Section 12AA of the I. T. Act dated 29th March, 2004. 4. The year under consideration is AY 2020-2021. The due dates to file the return ....
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....e the Central Board of Direct Taxes ('CBDT'). It is the CBDT who will deal with such applications filed beyond the period of three years and that the Assessees are not remediless. Accordingly, it has been contended in the reply affidavit that the Petitioner may be directed to file an application before the CBDT for resolution of its grievance. 9. In answer to this contention, Mr. Swapnil Newaskar, the learned counsel for the Petitioner, submitted that instead of sending the Petitioner to the CBDT, this Court can condone the delay in filing of Form 10B. He submitted that the delay in filing of Form No. 10B is only 31 days and that the Petitioner has given bona-fide reasons for such delay. It was also submitted that the same was due to a change in law, which was effective from the said year and also due to the difficulties arising out of the lockdown imposed due to the COVID pandemic. In such circumstances, he prayed that the delay in filing of Form No. 10B be condoned by this Court itself, instead of relegating the Petitioner to approach the CBDT. 10. On the other hand, Mr. Saxena, the learned Counsel for the Respondent submitted that no infirmity can be found with the impugne....
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....eturn of income. This is coupled with the fact that during such time, there was a lockdown announced by the Government. It should not be forgotten that we are dealing with a period when the COVID 19 pandemic was still prevalent. The administrative office of the Petitioner were also not working continuously in the year 2020-21 because of the lockdown. It is a known fact that during such time, time limits for various compliances were extended by the CBDT from time to time. So much so that even the Hon'ble Supreme Court had suo motu extended the time limits to file appeals/applications under various laws from time to time in Suo Motu Writ Petition (C) No. 3 of 2020. Thus, in the facts of the present case, we are satisfied that the reasons given by the Petitioner for the delay in filing of Form No. 10B are bona-fide. 14. Moreover, not condoning such delay would cause genuine hardships to the Petitioner inasmuch as the Petitioner has been denied exemption under Section 11 of the I. T. Act and a demand of Rs. 78,51,920/- has been raised for belated filing of the audit report in Form No. 10B. One of the relevant considerations for condoning delay under Section 119(2)(b) of the I. T....
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....dly there was only 24 days delay in filing Form 10B. It is true that the application seeking condonation of delay was filed after about 9 months. However, we find that this delay is not such that should deny the Petitioner from filing Form 10B with a delay of 24 days. We find that if this delay is not condoned, there will be genuine hardship to the Petitioner, inasmuch as, the Petitioner would be denied the exemption otherwise claimed under the provisions of Section 11 of the IT Act and which is a substantial amount. In the view that we take, we are supported by a decision of the Hon'ble Gujarat High Court in the case of Sarvodaya Charitable Trust v. ITO (exemption) [2021] 125 taxmann.com 75/278 Taxman 148 (Gujarat). A Division Bench of the Gujarat High Court in Sarvodaya Charitable Trust (supra) took a view that in cases like the present one (delay in filing Form 10B), the approach of the Authorities ought to be equitious, balancing and judicious and availing of exemption should not be denied merely on the bar of limitation. This is more so, when the legislature has conferred wide discretionary powers to condone the delay on the authorities concerned. The relevant portion of t....