Srivatsa Encivil Pvt. Ltd. Vs PCIT (Bombay High Court)
The Bombay High Court allowed a writ petition challenging an order passed under Section 119(2)(b) of the Income-tax Act, 1961, which had rejected a company’s request for condonation of a 13-day delay in filing Form 10-IC for Assessment Year 2025-26. The rejection had resulted in denial of the concessional tax regime available under Section 115BAA.
The petitioner, a construction company eligible to opt for the concessional tax regime under Section 115BAA, was required to file its return of income and Form 10-IC by 10 December 2025. Although the company had completed its audit in time and had already factored the Section 115BAA benefit into its accounts, both the return and Form 10-IC were filed on 23 December 2025, resulting in a delay of 13 days. The company attributed the delay to the sudden demise of its Group Founder and Chairman on 25 November 2025, which disrupted its functioning. An application seeking condonation of delay was filed on 24 December 2025 under Section 119(2)(b).
The tax authorities rejected the application on the ground that filing Form 10-IC within the prescribed timeline was mandatory. Before the High Court, the petitioner argued that the delay was minimal, bona fide, and caused by exceptional circumstances supported by documentary evidence. It also contended that the power under Section 119(2)(b) should have been exercised to condone the delay.
