Vrg Electronics Pvt Ltd Vs PCIT (Delhi High Court)
Whether, the rejection of application under section 119(2)(b) for condonation of delay in filing Form 10IC for exercising option under section 115BAA was justified, merely on the ground that the relevant assessment year was not specifically covered under the CBDT Circular, despite the existence of genuine hardship and the beneficial nature of the circular.
Application under Section 119(2)(b) rejected – delay in filing Form 10IC – exercising the option under Section 115BAA – Genuine hardship u/s 119(2)(b) – scope of beneficial circular issued under section 119(2)(b)
In the case of VRG Electronics Pvt. Ltd. vs PCIT (W.P. (C) 2625/2026, order dated 09.04.2026), the assessee had filed its return of income under section 139(4) but failed to file Form 10IC within the due date prescribed under section 139(1) due to inadvertent lapse on the part of its accountant. The assessee thereafter filed an application under section 119(2)(b) seeking condonation of delay on the ground of genuine hardship.
The Ld. PCIT rejected the application solely on the ground that the CBDT Circular dated 18.11.2024, which empowers condonation of delay in filing prescribed forms, did not specifically include the relevant assessment year i.e., AY 2023-24. The authority adopted a strict and technical interpretation without examining the existence of genuine hardship or the bonafide nature of the assessee’s claim.
