Sirez Limited Vs Union of India & Ors. (Delhi High Court)
In the case of Sirez Limited v. Union of India & Ors., the Delhi High Court considered a petition filed by Sirez Limited seeking condonation of delay in filing its Income Tax Return (ITR) for Assessment Year (AY) 2018-19 and refund of TDS amounting to Rs. 19,73,540. The petitioner, incorporated on 15.06.2005 and engaged in digital marketing, mobile app development, website development, and related activities, filed its ITR for AY 2018-19 on 20.09.2021, approximately 30 months after the extended due date of 31.10.2018. The petitioner claimed that internal disputes among its directors and financial difficulties prevented timely filing and sought condonation under Section 119(2)(b) of the Income Tax Act, 1961 to carry forward business losses of Rs. 1,06,60,750.
Read Interim SC Order in this case: SC to Examine Condonation of 30-Month ITR Delay After HC Rejects Genuine Hardship Plea
The petitioner explained that disagreements among the directors of Sirez Limited—namely CVVS Krishna, Chandaluri Lakshmi Rani, Gaurav Dalal, and Anuj Juneja, who were also directors of its holding company, Apptology Technology Pvt. Ltd.—led to resignations, lack of cohesion in management, and delayed decision-making. The petitioner argued that these internal disputes constituted genuine hardship preventing timely compliance. The petitioner also highlighted financial challenges, including the founding director taking up full-time employment and making personal payments to meet company obligations, to demonstrate extraordinary circumstances. Detailed documentary submissions were made to the authorities, including draft ITRs, audited accounts, and computation of income.
