Udit Goyal Vs PCIT (Delhi High Court)
Carry Forward of Capital Loss: 12-Day Delay in ITR Filing During COVID Deserves Liberal View-Delhi HC Remands Case
Genuine Hardship Can’t Be Ignored – Technicalities Can’t Defeat Justice- Pandemic Hardship Valid Ground for Delay
Delhi High Court considered a writ petition challenging the rejection of an application u/s 119(2)(b). The petitioner had filed his ITR for AY 2021–22 belatedly on 12.01.2022, i.e., with a delay of 12 days, claiming carry forward of long-term capital loss of ₹41.85 lakh from securities transactions. PCIT rejected his condonation request on 30.05.2023, holding that COVID-19 restrictions were not severe in late December 2021 & therefore no “genuine hardship” was established.
Petitioner argued that the delay was due to the pandemic’s second & third waves, staff shortages, & office closures. He relied on the Supreme Court’s suo motu order extending limitation periods during COVID-19 & CBDT Circulars (including Circular 1/2022 dated 11.01.2022) that had extended due dates for certain categories. He emphasized that the delay was inadvertent, not deliberate, & denial of condonation would unjustly deprive him of a legitimate right to carry forward losses.
Revenue maintained that ample time had been granted through successive extensions (till 31.12.2021), & a mere reference to the pandemic was insufficient to show hardship. It stressed that carry forward of capital losses is disallowed in belated returns & CPC had rightly processed the case.
