Assessee can request condonation of delay in filing of return if reason for delay was not attributable to him

Relevant Section – 119

• The assessee, a co-operative society engaged in marketing agricultural produce of its members, filed its return after completion of audit by the auditor appointed under section 63(4) of the Kerala Co-operative Societies Act, 1969, claiming refund of advance tax and the tax deducted at source remitted by others.

• The Assessing Officer rejected the return as time barred and declined the refund claimed. The application filed by the petitioner under section 119(2)(b) of the Income-tax Act, 1961, before the Central Board of Direct Taxes for condonation of delay in filing the refund application was rejected.

• The High Court held that the assessee was bound to get its accounts audited under section 64 of the Kerala Co-operative Societies Act, 1969, and the delay in audit by the auditor appointed under the Act was not attributable to the assessee. Besides showing sufficient cause for delay in filing the return for refund, the assessee had also established genuine hardship inasmuch as it had suffered losses in the five succeeding years.

• If the delay was not condoned the petitioner society would be deprived of Rs.10 lakhs which it was otherwise not liable to pay by virtue of exemption claimed under section 80P of the Act.