John And Marie Almeida Educational Trust Vs CIT (Madras High Court)
The Madras High Court considered writ petitions challenging orders rejecting the petitioner’s applications for condonation of delay in filing Form 10B for Assessment Years 2019-20 and 2020-21 under Section 119(2)(b) of the Income-tax Act, 1961.
The petitioner had sought condonation of delay in filing Form 10B. According to the petitioner, the audit report could not be filed along with the returns of income for the relevant assessment years due to ill-health. The petitioner relied on medical records showing that he suffered from a slipped disc and vision-related issues. It was also contended that the applications had been rejected solely because they were filed more than three years after the end of the relevant assessment years. The petitioner further submitted that Section 119(2)(b) of the Income-tax Act does not prescribe any time limit for filing an application seeking condonation of delay.
The Revenue opposed the petitions. It was submitted that the medical records did not justify the petitioner’s failure to file the audit report during the relevant period. The Revenue also pointed out that the audit reports had been received sufficiently early to enable their filing along with the returns of income. Reliance was placed on CBDT Circular No.16 of 2024 dated 18.11.2024, and it was submitted that the circular was binding on the income-tax authorities.
