K. S. Bilawala & Ors. Vs PCIT 17 (Bombay High Court)
The Bombay High Court adjudicated a case concerning K.S. Bilawala & Ors., where the petitioners challenged an order rejecting their request to file a revised income tax return for the Assessment Year 2022-23. The petitioners, engaged in land development, had received a compensation of ₹39,07,595 under the Right to Fair Compensation and Transparency in Land Acquisition Act, 2013. However, due to an oversight, this amount was included in their taxable income. Upon realizing the mistake, they sought to revise their return, but the deadline had lapsed. Their application for condonation of delay under Section 119(2)(b) of the Income Tax Act, 1961, was denied on the ground that they failed to demonstrate “genuine hardship.”
The High Court examined the concept of “genuine hardship,” relying on judicial precedents such as Optra Health Pvt. Ltd. v. Additional Commissioner of Income Tax and Sitaldas K. Motwani v. Director General of Income Tax. The court emphasized that the term must be interpreted liberally, considering the principles of substantial justice. It noted that taxpayers who seek to correct inadvertent mistakes do not gain any undue advantage from delayed filings, and denying condonation could result in an unjust outcome. Furthermore, the court highlighted that the Income Tax Department should not take a rigid approach but should focus on ensuring fairness and justice.
