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2014 (12) TMI 191 - BOMBAY HIGH COURTOrder u/s 119(2)(b) – Rejection of application for condonation of delay of 22 months – Held that:- From time to time, the CBDT has been issuing instructions to effectuate exercise of powers u/s 119(2)(b) which includes, instruction No.12/2003 dated 30 October 2003 - In M/s. Bombay Mercantile Coop Bank Ltd. Versus The Central Board of Direct Taxes [2010 (9) TMI 23 - BOMBAY HIGH COURT] it has been held that in matters of condonation of delay highly pedantic approach should be eschewed and a justice oriented should be adopted - It also observed that a party should not be made to suffer on account of technicalities - the CBDT in passing the order, has adopted an unduly technical or pedantic approach - the contention of the revenue that the effect of an order condoning delay in filing the returns, leave the ITO with no choice but to grant the refund as claimed, has no substance. The order of the CBDT also seeks to reject the application for condonation of delay on account of delay from the date of filing the Return of Income – the assesse had no occasion to meet the same - the delay in filing of an application if not coupled with some rights being created in favour of others, should not by itself lead to rejection of the application - This is of course upon the Court being satisfied that there were good and sufficient reasons for the delay on the part of the applicant - a company dealing in Artifacts and finances, which has the benefit of services of professionals and auditors - an acceptable explanation was offered by the petitioner and a case of genuine hardship was made out - The refusal by the CBDT to condone the delay was a result of adoption of an unduly restrictive approach - The CBDT appears to have proceeded on the basis that the delay was deliberate, when from explanation offered by the petitioner, it is clear that the delay was neither deliberate, nor on account of culpable negligence or any mala fides – thus, the order of the CBDT refusing to condone the delay in filing the Return of Income for the AY 1997-1998 is to be set aside – delay condoned and Return of Income is directed to be admitted for consideration – the AO is directed to scrutinize the Return of Income and examine the claim for refund on merits - Decided in favour of assesse.
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