Rajgreen Infralink LLP Vs PCIT (Gujarat High Court)
The Gujarat High Court examined a writ petition challenging an order dated 27.10.2023 by which the tax authority rejected an application seeking condonation of delay in filing the return of income for Assessment Year (AY) 2021–22 under Section 119(2)(b) of the Income-tax Act, 1961.
The petitioner is a Limited Liability Partnership engaged in real estate development in Surat. The original due date for filing the return of income for AY 2021–22 under Section 139(1) was 31.10.2021. Owing to the COVID-19 pandemic, this due date was extended to 15.03.2022 through notifications dated 20.05.2021, 09.09.2021, and 11.01.2022. The petitioner filed its return on 28.03.2022, declaring an income of ₹4,56,17,090, resulting in a delay of 13 days.
Because of the belated filing, a deduction of ₹4,35,00,000 claimed under Section 80IBA of the Act was not allowed in the intimation issued under Section 143(1) dated 12.12.2022. Thereafter, the petitioner filed an application on 17.08.2023 under Section 119(2)(b) seeking condonation of the 13-day delay. This application was rejected by the respondent authority on 27.10.2023, leading to the present writ petition.
The petitioner contended that the delay was minimal and occurred due to restrictions and disruptions caused by the COVID-19 pandemic. It was submitted that detailed reasons explaining the delay were clearly set out in the application, but the authority rejected the request without properly considering them. The petitioner also argued that the authority incorrectly relied on Circular No. 09/2015 dated 09.06.2015 to conclude that it lacked the power to condone the delay.
