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Madras HC Allows Form 10B Delay Condonation for Genuine Hardship

Case Law Details

TaxGuru Citation
2026 taxguru.in 12788
Case Name
Mahavatar Babaji Charitable Trust Vs CIT (Madras High Court)
Date of Judgement/Order
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Mahavatar Babaji Charitable Trust Vs CIT (Madras High Court)

Summary: The Madras High Court considered a writ petition challenging the order dated 22.03.2025 rejecting M/S.Mahavatar Babaji Charitable Trust’s application for condonation of delay under Section 119(2)(b) of the Income-tax Act, 1961. The application concerned a one-day delay in filing the audit report in Form 10B for Assessment Year 2020-2021.

The petitioner submitted that Form 10B had been filed on 16.01.2021 with a delay of one day and that the return of income had been filed on 13.02.2021. The delay was attributed to the COVID-19 pandemic. The petitioner contended that the impugned order had rejected condonation by relying upon Circular No.16/2024. Reliance was also placed on the Madras High Court’s earlier order dated 03.07.2026 in John and Marie Almeida Educational Trust v. The Commissioner of Income-Tax (Exemptions), W.P. Nos.15587 and 16818 of 2025, where the Court held that clause (b) of Section 119(2) does not prescribe a time limit for making an application for condonation.

The Revenue submitted that the application had been filed beyond the time limits specified in Circular No.16/2024 and that condonation was therefore not possible.

The Court noted that the petitioner was a Charitable Trust and that exemptions had been claimed for the relevant assessment year. The audit report had been filed with only a one-day delay during the COVID-19 period. The Court found that the sole reason for rejecting the application was the time limit prescribed in Circular No.16/2024.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 21,889

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