Arulmigu Gnanamalai Murugan Educational Trust Vs CIT (Exemption (Madras High Court)
Summary: The Madras High Court considered a writ petition challenging the order dated 08.09.2025 rejecting the petitioner’s application for condonation of delay under Section 119(2)(b) of the Income Tax Act, 1961. The petitioner, an educational trust, stated that its statutory audit report was made ready only on 30.12.2020 and, consequently, the return of income could be filed only on 15.02.2022. After receiving a demand notice dated 24.06.2025, the petitioner replied and thereafter filed the application seeking condonation of delay. An appeal filed before the Income Tax Tribunal was rejected on the ground that an appeal would not lie against such order. The Revenue relied on Circular No.16/2024 dated 18.11.2024, submitting that the circular was binding on the Income Tax Department and precluded consideration of such an application after three years from the end of the relevant financial year. The High Court observed that Section 119(2)(b) does not contain any restriction fettering the discretion of the Income Tax authority to condone delay. Taking note that the petitioner was a charitable trust and had cited delay in submission of the statutory audit report as the reason for delayed filing, the Court held that the petitioner had approached the Commissioner belatedly. Subject to payment of Rs.15,000 as costs to the Adyar Cancer Institute, Chennai within two weeks from receipt of a copy of the order, the Court set aside the order dated 08.09.2025 and condoned the delay. The second and third respondents were directed to give effect to the order and proceed further with the assessment accordingly. The writ petition was disposed of and connected writ miscellaneous petitions were closed.
