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TMI Blog2024 (12) TMI 647X X X X Extracts X X X X X X X X Extracts X X X X ..... astructural works and is an assessee of Income Tax under the Income Tax Act, 1961 and holding PAN AALCA5858Q for the purposes. The petitioner filed Income Tax Return for the assessment year 2020-21 on 31.03.2022 along with it had also filed Form No. 10-IC for exercise of option under Sub-section (5) of Section 115BAA of the Act. Section 115 BAA was introduced on September, 2019 to give additional benefits of the optional reduced corporate tax to certain categories of domestic companies permitting them to retain more profits in view of the competitive business environment. Under Section 115BAA, domestic companies have the option to pay tax at a rate of 22% plus applicable surcharges instead of 30% plus surcharges. This provision is optional, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the delay under Section 119 (2) (b) of the Income Tax Act, 1961 by filing Form No. 10-IC for Assessment Year 2021-22 by extending the deadline of file Form 10-IC till 31.01.2024. The petitioner however inspite of his best efforts could not avail the advantage of the extended due date of 15.03.2022 and filed its returns within that extended period of time. The said returns were thereafter filed on 31.03.2022 together with all taxes, interest and other charges are applicable. This delay occurred because of COVID-19 pandemic situation, the petitioner was quarantine at his Noida residence for Covid related infections which caused general hardship to the petitioner. 6. It is the case of the petitioner before this Court that this delay caused ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hardship" used in Section 119 (2) (b) has to be construed liberally and refusal to condone the delay resulting in a matter where the merits require consideration but was not consider on the point limitation and thereby defeating the cause of justice at the very threshold. 8. The learned Standing counsel for the Income Tax Department submits that the power to condone the delay under Section 119 is in respect of the scheme is only reserved for the Central Board of Direct Taxes. The CBDT by its circular dated 23.10.2023 had issued a circular in respect of the cases where such delay in filing of Form 10-IC could be considered in cases where the return of income has been filed on or before the due date specified under Section 139(1) of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court and the Orissa High Court have been carefully perused. The facts in the present proceedings are similar. The provisions of Section 119 have also been carefully noted. 14. What transpires is that it is the CBDT which is vested with the power of condonation of delay in the event the Board considers it necessary to pass such an order on the attending facts and circumstances of the case, where the authority prescribed by the statute is given the discretion to consider the difficulties faced by any assessee and thereupon pass an order, it will be improper for the subordinate authorities to reject the same on the ground that no power is prescribed on the said authorities. Where statute provides for the provisions for condonation of d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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