R N Shetty Trust Vs PCIT (Karnataka High Court)
In R N Shetty Trust Vs PCIT (Karnataka High Court), the petitioner sought to quash the order dated 24.02.2021 rejecting its application under Section 119(2)(b) of the Income Tax Act for condonation of a 36-day delay in filing income tax returns for the Assessment Year 2017-18. The petitioner contended that the delay was due to system failures caused by heavy rainfall, along with bona fide reasons, unavoidable circumstances, and sufficient cause, resulting in genuine hardship as outlined in Circular No.9/2015 dated 09.06.2015.
The Revenue opposed the petition, supporting the original order and asserting that there was no merit in the claim. Upon reviewing the material, the Court observed that the authorities had adopted a hyper-technical approach in rejecting the condonation request, failing to consider that the delay was caused by genuine hardship and unavoidable circumstances. The Court noted that the petitioner had filed the returns shortly after the prescribed period and that the reasons presented constituted sufficient grounds for condonation under the relevant provisions.
Applying a justice-oriented approach, the Court concluded that the impugned order was erroneous and warranted interference. Consequently, the Court allowed the petition, set aside the impugned orders dated 24.02.2021, and permitted the petitioner’s application for condonation of the 36-day delay. The respondents were directed to accept the petitioner’s returns for the Assessment Year 2017-18, while retaining the liberty to verify the claims and proceed further in accordance with law.
