Smita Dilip Ghule Vs Central Board of Direct Taxes & Others (Bombay High Court)
Bombay High Court held that non-filing of return of income within prescribed time due to genuine and valid reasons should be condoned. Accordingly, delay in filing of return of income condoned.
Facts- The Petitioner is an individual and is a doctor by profession. The Petitioner’s Return of Income, u/s. 139 (1), for the Assessment Year 2020-2021, was due to be filed on 10th January, 2021 as per the extended due date, however, the Return of Income was filed on 31st March, 2021, declaring total income of Rs.6,75,837/-. The Petitioner had a claim of carry forward of long term capital loss of Rs.99,88,535/-.
The Petitioner made an Application dated 31st March, 2021 to CBDT (Respondent No. 1), requesting it to condone the delay in filing the Return and allowing the claim of carry forward of long term capital loss of Rs.99,88,535/-.
By an Order dated 20th October, 2023, Respondent No. 1 rejected the Petitioner’s Application for condonation of delay of 80 days in filing the Return of Income. It is this Order dated 20th October,2023 which has been impugned in the present Petition.
Conclusion- The Petitioner, who is a doctor, was involved in Covid-19 duty at that time. The valuation of land for working out capital gain could not be completed prior to the due date of filing of the Return due to the said reasons and as the valuer was not able to carry out physical verification of the site until 13th February, 2021 and provide the Valuation Report until 16th March, 2021. In this context, it is important to note that the valuer was also a senior citizen aged 75 years. In our view, if for these reasons, the delay of 80 days in filing of the Return of Income by the Petitioner was not condoned, then definitely the Petitioner would be put to genuine hardship as the Petitioner was prevented by genuine and valid reasons for not filing the Return of Income on time.
