Global Organisation for Development Vs CIT (Exemption) (Telangana High Court)
The Telangana High Court reviewed a writ petition filed by Global Organisation for Development against the Commissioner of Income Tax (Exemptions), challenging the rejection of its application under Section 119(2)(b) of the Income Tax Act, 1961. The case pertained to the assessment years 2018-19 and 2020-21, during which the petitioner, a registered non-profit organization, failed to submit Form 10B within the stipulated time. The delays were 161 days and three days, respectively, attributed to the Chartered Accountant’s office and disruptions caused by the COVID-19 pandemic. The petitioner contended that the rejection order was mechanical and lacked reasoning, ignoring CBDT Circular No. 2/2020, which allows condonation of delays up to 365 days. The petitioner cited a prior ruling in M/s. Shilparamam Arts, Crafts and Cultural Society, where the court permitted condonation in similar circumstances.
The court observed that the Income Tax authority did not adequately consider the explanations provided and failed to discuss the merits of the delay. It also referenced various judicial precedents affirming that procedural delays should not undermine substantive tax exemptions. The court emphasized that Section 119(2)(b) is intended to prevent undue hardship and ensure fair consideration of condonation requests. Given that the CBDT circular empowers tax authorities to handle such delays pragmatically, the court found the rejection order unsatisfactory. Based on these findings, the Telangana High Court ruled in favor of the petitioner, setting aside the impugned order and directing reconsideration of the condonation request.
