Application for Condonation of Delay under Section 119(2)(b) filed beyond a period of 3 years in terms of Circular No. 16 of 2024 issued by CBDT & Recent HC Ruling

 

The Petitioner Trust filed a Combined Application for Condonation of Delay in filing Return of Income, Form 10B and Form 10, beyond a period of 3 years from the end of relevant Assessment Year 2020-21.

Application relating to Form 10B and Form 10 was rejected on the sole ground that the Application was filed beyond a period of 3 years from end of relevant A.Y. and hence the Commissioner did not have power to condone the delay in terms of Circular No. 16 / 2024 issued by CBDT.

However, during pendency of this Writ Petition, the Application relating to Return of Income was allowed by the Commissioner being satisfied with the sufficient cause shown by Petitioner for the delay in filing Return of Income.

The Hon’ble Court (without examining the validity of Circular No. 16 / 2024) set aside the Rejection Orders thereby condoning the delay in filing Form 10B and Form 10. The Court followed its earlier decision in Little Flowers to arrive at this conclusion.

Resultantly, the delay in filing Return of Income, Form 10B as well as Form 10 stood condoned and Respondents including CPC were directed to process the Return once again on the basis that the Forms were filed within time.

The copy of the order is as under:

1766997151938