B.U Bhandari Nandgude Patil Vs Central Board of Direct Taxes & Ors (Delhi High Court)
In the case B.U. Bhandari Nandgude Patil Associates vs CBDT & Ors, the Delhi High Court dismissed a writ petition filed by an association of persons (AOP) challenging the CBDT’s refusal to condone delay in filing the income tax return for the Assessment Year 2006–07. The firm filed its return on 30th March 2007 under Section 139(4) of the Income Tax Act, missing the original due date of 31st October 2006 under Section 139(1). The Assessing Officer subsequently disallowed the deduction claimed under Section 80IB, citing Section 80AC, which requires timely filing. This decision was upheld by the Commissioner of Income Tax (Appeals) and later by the Income Tax Appellate Tribunal.
The petitioner applied to CBDT under Section 119(2)(b) for condonation of delay, attributing it solely to the medical emergency of the auditor. However, the auditor failed to provide any specific details, documentation, or timeline related to the illness. The court noted that audits typically involve teams and that other audits had been completed on time. The CBDT rejected the condonation request due to the vague claims and lack of supporting evidence. The High Court upheld the CBDT’s view, stressing that statutory time limits must be respected and cannot be waived based on unverified assertions. The court concluded there was no sufficient cause for the delay and dismissed the petition without awarding any costs.
