TMI Blog2023 (4) TMI 245X X X X Extracts X X X X X X X X Extracts X X X X ..... emerged. That apart, there is a statement on oath of the Chartered Accountant of the petitioner contending that there was marriage of her elder sister on 16/02/2021 and she was discharging her family obligations. Rather, she has taken the responsibility mentioning that there was failure on her part to file return of income tax of the petitioner before the due date. As it is settled principle that for the mistake on the part of the professionals, the litigant should not suffer. Thus firstly, the affidavit of the Chartered Accountant, which has neither been disputed nor controverted by the respondents. Secondly, due to fault on the part of professional, the party should not suffer. Thirdly, that the delay is only of 36 days. Considerin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Section 139(1) of the Income Tax Act, 1961 (hereinafter referred to as Act for short). If the return is filed beyond the due date, the loss suffered in the business cannot be carried forward for set off in the next succeeding year. Since the petitioner is a company and liable for audit under the Act, the due date for filing the return of income tax for the Assessment Year 2020-2021 (Financial Year 2019-2020) was 31/10/2020. Due to COVID- 19 pandemic, the due date for filing of income tax return for the Assessment Year 2020-2021 was extended up to 15/02/2021. The return came to be filed on 23/03/2021 after the delay of 36 days. On 21/05/2021, the petitioner filed an application for condonation of delay of 36 days before respondent No.1 b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of delay, reads thus : Section 119(2)(b)- The Central Board of Direct Taxes may, if it considers it desirable or expedient to do so for avoiding genuine hardship, authorize any income tax authority to admit an application or claim for any exemption, deduction, refund or any other relief under the Act after expiry of the period specified by or under the Act. 07] The Central Board of Direct Taxes (for short the Board ) is vested with the power under Section 119(2)(b) of the Act to admit an application or claim for any exemption, deduction, refund or any other relief under the Act after expiry of the period specified by or under the Act for making such application or claim and to deal with the same on merits in accordance with l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntive justice to the parties by disposing of the matters on merit. The expression genuine has received a liberal meaning in view of the law laid down by the Apex Court referred to here in above and while considering this aspect, the authorities are expected to bear in mind that ordinarily the applicant, applying for condonation of delay does not stand to benefit by lodging its claim late. Refusing to condone delay can result in a meritorious matter being thrown out at the very threshold and cause of justice being defeated. As against this, when delay is condoned the highest that can happen is that a cause would be decided on merits after hearing the parties. When substantial justice and technical considerations are pitted against each oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal due to genuine hardship that should not be denied on technicalities. 11] This takes us to the order dated 24/03/2022 passed by respondent No.1. Perusal of the order reveals that respondent No.1 has not dealt with the reasons contained in the application for condonation of delay and the application was rejected without considering the affidavit of the Charted Accountant on the premise that since the account has been audited on 25/06/2020, there is no reason for delay in filing the return. Another reason, which has given that though the petitioner had incurred losses, it had distributed dividend of Rs.302.93 lakhs. Holding that there is no financial hardship, respondent No.1 rejected the application for condonation of delay. It appears ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd for a sheer mistake or oversight on the part of his legal or tax advisers. All that was necessary for the firm to do was in fact done by it and its partners. That the chartered accountants made a mistake through oversight should not have been considered a fatal circumstance outweighing all the other facts and circumstances in favour of the assessee. Though to be perfect is divine, this mortal world has not as yet come across one so perfect and divine as to make no mistake at all. 14] To summarize, firstly, the affidavit of the Chartered Accountant, which has neither been disputed nor controverted by the respondents. Secondly, due to fault on the part of professional, the party should not suffer. Thirdly, that the delay is only of 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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