Case Law Details
Amit Hospital Pvt Ltd Vs PCIT (Gujarat High Court)
Introduction: The Gujarat High Court, led by Hon’ble Chief Justice Sunita Agrawal and Hon’ble Justice AP Mayee, delivered a significant judgment in the case of Amit Hospital Pvt Ltd vs PCIT. The ruling emphasizes that applications under Section 119(2)(b) of the Income Tax Act, 1961 cannot be dismissed using vague and arbitrary reasons, specifically citing the absence of genuine hardship to the petitioner. The court further notes that rejection on merits is unwarranted when the delay in filing the income tax return is not condoned.
Detailed Analysis: The case revolves around the rejection of the petitioner’s application seeking permission for condonation of delay and permit to file income tax return for the Assessment Year 2020-21. The delay of 26 days was attributed to challenges arising from the COVID-19 pandemic, particularly staff unavailability and the hospital’s conversion into a dedicated Covid care facility.
The court dissects the grounds of rejection, highlighting the respondent’s contention that lack of clarity on legal and taxation issues does not qualify as genuine hardship. The court also questions the rejection of the genuine hardship claim based on the gradual easing of Covid travel restrictions, stating that the petitioner had ample time to file the return within the extended deadline.
The order addresses the petitioner’s assertion that overwhelming Covid situations, leading to the hospital’s declaration as a dedicated Covid facility, caused unavoidable delays. The court scrutinizes this claim, emphasizing that permission to treat Covid patients was granted after the financial year ended, rendering the explanation factually incorrect.
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