Banirupa Charitable Trust Vs Central Board of Direct Taxes (Orissa High Court)
Summary:The Orissa High Court considered a writ petition challenging the order dated 19th January, 2026 passed by the Commissioner of Income Tax (Exemption), Hyderabad, rejecting the petitioner’s application under Section 119(2)(b) of the Income Tax Act, 1961 for condonation of delay in filing the audit report in Form 10B prescribed under Rule 17B of the Income Tax Rules, 1962 for claiming exemption under Section 12A for Assessment Year 2021-22.
The petitioner submitted that the prescribed due date for furnishing the audit report was 15th February, 2022, whereas Form 10B was filed on 5th March, 2022, resulting in a delay of 18 days. It was contended that the delay occurred due to the Covid-19 pandemic and that the Commissioner had been delegated powers to exercise discretion under Section 119(2)(b) by Circular No.10 of 2019 dated 22.05.2019 and Circular No.16 of 2024 dated 18.11.2024. The petitioner further relied upon the decision of the Gujarat High Court in Sarvodaya Charitable Trust v. Income Tax Officer (Exemption), contending that furnishing the audit report was procedural and that it could be filed even before assessment.
The Income Tax Department defended the impugned order, submitting that the Commissioner had exercised discretion under Section 119(2)(b) and had rejected the application after finding that sufficient cause and genuine hardship had not been demonstrated.
