Action Research for Health and Socio-economic Development Vs Central Board of Direct Taxes (CBDT) (Orissa High Court)
Orissa High Court held that delay in filing Audit Report in Form 10B due to Covid-19 pandemic condoned and since it is settled law that delay in case of genuine hardship need to be allowed.
Facts- Vide the present petition, the petitioner has challenged the legality and propriety of Order passed by Commissioner of Income Tax (Exemption) rejecting the application for condonation of delay in furnishing Audit Report in Form-10B prescribed under Rule 17B of the Income Tax Rules, 1962, in respect of the Assessment Year 2020-21.
Conclusion- It requires no evidence when the Hon‘ble Supreme Court as also this Court recognized the insurmountable difficulties faced by litigants during the COVID pandemic during 2020-22. Thus, the Order dated 17.02.2025 of the Commissioner of Income Tax cannot be said to have been passed with rational application of mind.
The cause shown by the petitioner for delay in filing Audit Report in Form 10B was “force majeure”— Covid-19 pandemic.
Held that this Court is of the considered view that sufficient cause has been shown that the petitioner had ―genuine hardship‖ in complying with the statutory requirement. Therefore, it is warranted to be observed that the application for condonation of delay of seventy-six days in filing Audit Report in Form 10B should have received liberal consideration and instead of showing pedantic approach the Commissioner of Income Tax ought to have been more pragmatic.
