Shree Maharaja Agrasen Seva Sansthan Vs CIT (Exem) (Gujarat High Court)
The Gujarat High Court ruled in favor of Maharaja Agrasen Seva Sansthan in its writ petition challenging the rejection of its delay condonation request for filing Form 10B for the Assessment Year 2014-15. The Commissioner of Income Tax (Exemptions) had denied the application under Section 119(2)(b) of the Income Tax Act, citing an excessive delay of six years and a lack of valid justification. The petitioner argued that technical issues and software-related challenges caused the delay, but the revenue authorities dismissed these reasons as insufficient. The department contended that the petitioner displayed negligence by not utilizing available legal remedies in a timely manner.
The High Court reviewed relevant case laws and observed that genuine hardship must be considered in delay condonation matters. The court emphasized that procedural delays should not unfairly deprive an entity of its rightful tax exemptions. Concluding that the CIT (Exemption) had taken an excessively rigid approach, the court quashed the impugned order and allowed the delay condonation application, enabling the petitioner to claim exemptions under Sections 11 and 12 of the Income Tax Act.
FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT
1. By this writ-application under Article 226 of the Constitution of India, the writ-applicant has prayed for the following reliefs:-
10(a) To issue a writ of certiorari or in the nature of certiorari or any other appropriate writ, orders or directions quashing and setting aside the impugned order dt.17-6-2021 passed u/s.119(2) of the Act [Annexure A] rejecting the application for condonation of delay in filing of Form No.10B for A.Y.2014-15 as well as the orders passed in consequence to the impugned order.
(b) To issue a writ of mandamus or in the nature of mandamus or any other appropriate writ, orders or directions to the Respondent condoning the delay in filing the Form No.10B for A.Y.2014-15 and allow all consequential reliefs, allowances, deductions & exemptions as permissible under the
