TaxTMI 
TaxTMI 
2026 (3) TMI 1575
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....has assailed the order dated 03.01.2024 passed by the Respondent under section 119(2)(b) of The Income Tax Act, 1961 (hereinafter referred to as "the Act" for the short) rejecting the application moved by the Petitioner for condonation of delay in filing Form 10-IC for the Assessment Year 2022-23 (hereinafter referred to as "year under consideration"). 5. The brief facts giving rise to the filing of the present petition are as under: 5.1 The petitioner company was incorporated on 10.12.2019 and is engaged in "Healthcare & Lifesciences" industry. The petitioner has been recognized as "start-up" by the Department for Promotion of Industry and Internal Trade vide Certificate No. DIPP80620 dated 28.05.2021. The petitioner, thereafter, moved an application in August 2021 before the Inter-Ministerial Board of Certification (hereinafter referred to as "the Board") for getting a certificate of eligible business, as Act) as envisaged under section 80-IAC of the Act. 5.2 Books of accounts of the petitioner for the year under consideration have been audited and Tax Audit Report was duly uploaded on 28.09.2022. 5.3 The Board, during its 66th meeting held on 07.10.2022, decided appl....
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.... It is further submitted that the petitioner has been recognized as a "start-up" by the Department for Promotion of Industry and Internal Trade vide Certificate No. DIPP80620 dated 28.05.2021. The petitioner moved an application before the Board for getting a certificate of eligible business, as envisaged under section 80-IAC of the Act. 6.2 It is further submitted that the petitioner, thereafter, consulted professionals in the field seeking opinion as to whether the decision of the Board should be challenged or not. The petitioner was advised that challenging the decision of the Board may not be a workable solution. However, the petitioner was advised to claim benefit of section 115BAA of the Act. Upon being so advised somewhere in the middle of December 2022, the petitioner decided to go for the said option i.e. claiming benefit envisaged under section 115BAA of the Act. 6.3 It is submitted by learned Senior Advocate Mr. Hemani that there is no dispute as regards the fact that the activities carried out by the petitioner fall within the ambit of eligible activities prescribed under Section 80-IAC of the Act and all the conditions stand fulfilled except "certificate of eligi....
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.... 115BAA of the Act. 9. The ITR was processed under Section 143(1) of the Act, computing tax at normal rate as the Form 10-IC was uploaded on portal on 30.12.2022 whereas, the extended due date for filing return of income was 07.11.2022, resulting raise in demand of Rs. 50,72,890/-. 10. The assessee Company in its application dated 15.09.2023, has stated that it applied for start-up by complying with the conditions laid down under Section 80-IAC of the Act and waited for necessary certification from the Inter Ministerial Board of Certification from claiming deductions and hence did not pay advance tax installment, however, the Board disapproved the application of the Company in its meeting held on 07.10.2022, which was communicated to the petitioner vide email dated 21.10.2022. 11. The petitioner towards the end of December, 2022, paid the self-assessment tax in four installments i.e. Rs. 30,00,000/- on 20.12.2022 Rs. 30,00,000/- on 26.12.2022 Rs. 30,00,000/- on 28.12.2022 and Rs. 49,79,770/- on 30.12.2022. Thus, when the last installment was paid, the petitioner opted for benefit under Section 115BAA by filing Form 10-IC on 30.12.2022, also declaring total income at Rs. 5,....
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....ns employed in the execution of this Act shall observe and follow such orders, instructions and directions of the Board : (b) the Board may, if it considers it desirable or expedient so to do for avoiding genuine hardship in any case or class of cases, by general or special order, authorise [any income tax authority, not being a [***] Commissioner (Appeals)] to admit an application or claim for any exemption, deduction, refund or any other relief under this Act after the expiry of the period specified by or under this Act for making such application or claim and deal with the same on merits in accordance with law;" 14. Before, we form an opinion, we are reminding ourselves, about the legal precedent in the case of B.M. Malani vs. Commissioner of Income-tax & Anr., [2008] 306 ITR 196, wherein the Supreme Court had an occasion of interpreting the word and phrase "genuine hardship". The Apex Court, referring to the term "genuine" as per New Collins English Dictionary, where the word genuine was defined as "Genuine: not a fake or counterfeit, real, not pretending (not bogus or merely a ruse)". On the principle of purposive construction, the Supreme Court held that the ingre....