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2023 (9) TMI 1226 - HC - Income TaxCondonation of delay in filing the return of income - carry forward the capital loss denied - HELD THAT:- The words in the section “if it considers it desirable or expedient to do so for avoiding genuine hardship” given wide powers on the Board and obligates the authority concerned dealing with the request for acceptance of the application, to consider the relevant facts and reasons which may have been advanced for condoning the delay. The object is to help the assessee, who for good and valid reasons is prevented from making an application. As it is not in dispute that the observations made in the impugned order regarding that the petitioner was a habitual defaulter is misconceived, as in three out of five years, there was no delay since the due dates were extended by the authorities. Moreover, in order to do substantial justice, the period of limitation would not come as hindrance as the loss suffered by the petitioner is genuine and not set off the same would result into denial of substantial justice. The three reasons given by the assessee for delay, namely, health problems of Senior Accountant Pragna Patel, computer system having got corrupted and heads of accounts being on the verge of retirement and heavy rainfall in the month of July disrupting routine were genuine and cannot be termed as an excuse for filing delayed returns. The petitioner has explained in detail all the above reasons for delay in filing the return. The delay is also of not more than 152 days. It is a settled position of law that the respondent Board has wide powers to condone the delay and in the facts of the case, such powers ought to have been exercised judiciously so as to render substantial justice. We, therefore, find that the rejecting the application of the petitioner by the impugned order dated 16.05.2008, the respondent-Board ignored the facts and the settled legal position of law while considering the genuine claim of the petitioner to condone the delay in filing the return of the income. We find that in rejecting the application of the petitioner vide impugned order dated 16.05.2018, the Board, the respondent, ignored the above position of law and failed to consider the petitioner’s genuine claim for condoning the delay. Therefore, the order of the respondent is quashed and set aside. The application filed by the petitioner u/s 119(2)(b) for condonation of delay in filing the return of income for the Assessment Year 2014-15 seeking to carry forward the capital loss is allowed.
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