In case of genuine hardship, delay in filing of ITR may be condoned by the CBDT: Bombay HC
Smita Dilip Ghule Versus The Central Board of Direct Taxes (WP No. 2348 of 2024)
Facts:
1. The Petitioner made an Application dated 31st March, 2021 to the Central Board of Direct Taxes (the CBDT), requesting it to condone the delay in filing the Income Tax Return and allowing the claim of carry forward of long term capital loss of Rs.99,88,535/- by exercising power under Section 119 (2)(b) of the Income Tax Act.
2. In the application for condonation of delay in filing of returns, the petitioner had indicated that due to the Covid-19 pandemic lock down being announced, the Petitioner, being a doctor, was rendering services to Covid-19 patients. Further, due to various Covid-19 restrictions and the nature of occupation of the Petitioner, she was unable to approach her tax consultant in advance in respect of computation of long term capital gain.
3. She also said that the consultant advised her to carry out a valuation for determining the cost of acquisition of properties for computation of capital gains. However, the valuer was required to physically visit the site to provide the valuation report but the valuer himself was a senior citizen, aged 75 years, having respiratory issues. So the valuation itself could not be completed before the due date of filing of return of income.
Hon Bombay HC held as below:
1. A perusal of Sec 119(2) shows that the power conferred therein upon CBDT is for the purpose of “avoiding genuine hardship”. In our view, the Petitioner would be put to genuine hardship, if the delay in filing the Return of Income is not condoned.
2. In our view, this finding of Respondent No.1 (CBDT) is clearly wrong because, as stated in detail hereinabove, the Petitioner had given various justifiable reasons for condoning the delay in filing the return of income.
3. So, the impugned order dated 20th October, 2023 passed by Respondent No.1 is hereby quashed and set aside. The delay of 80 days in filing of the Return of Income for Assessment Year 2020-2021 by the Petitioner is hereby condoned. The Respondents are directed to permit the Petitioner to file the Return of Income without penalty, fees and interest within a period of two weeks from the date of uploading of this order;
The copy of the advisory is as under:
