Bhatewara Associates Vs Income Tax Appellate Tribunal (Bombay High Court)
In the case of Bhatewara Associates Vs. Income Tax Appellate Tribunal, the petitioner had entered into a joint venture agreement with Sanghvi Premise Private Limited but failed to file its return of income for Assessment Year (AY) 2011-12 in a timely manner. Consequently, an assessment order was passed on 14th March 2024, denying the petitioner a deduction under Section 80IB of the Income Tax Act, 1961 due to the belated filing of the return.
The petitioner’s appeal against this decision was dismissed by the Commissioner of Income Tax (Appeals) [CIT(A)] on the same grounds. Subsequently, the petitioner filed an appeal before the Income Tax Appellate Tribunal (ITAT) and simultaneously submitted an application under Section 119(2)(b) of the Act before the Central Board of Direct Taxes (CBDT) seeking condonation of the delay in filing the return.
The CBDT rejected the petitioner’s application under Section 119(2)(b) of the Act. Aggrieved by this decision, the petitioner filed a writ petition before the High Court, which was disposed of on 23rd August 2022. The High Court, while condoning the delay in filing the return, directed the Income Tax Authority to consider the petitioner’s claim for deduction under Section 80IB(10) for AY 2011-12 as if there was no delay in filing the return.
