9911796707
TMI Blog2025 (5) TMI 716X X X X Extracts X X X X X X X X Extracts X X X X ..... assed by respondent under Section 119 (2) (b) of the Income Tax Act, 1961 [Act] whereby the petitioner's application for condonation of delay in filing Form 10B for Assessment Year [AY] 2022-23 was rejected. 2. The petitioner contends that the delay of one month in filing the Form 10B was due to the mitigating circumstances that were duly established on record. The petitioner further contends that notwithstanding the fact that the delay of one month was on account of genuine hardship, the learned Commissioner of Income Tax (Exemption) [CIT(E)] has rejected the petitioner's request for condonation of delay in filing the requisite form. 3. According to the petitioner, the impugned order is arbitrary and unreasonable on account of failure on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is pending before the Commissioner of Income Tax (Appeals) [CIT(A)]. Thereafter, the petitioner's return of income for AY 2022-23 was picked up for scrutiny and notice dated 01.06.2023 under Section 143 (2) of the Act was issued by the National Faceless Assessment Centre [NFAC]. One of the reasons why petitioner's income was picked up for scrutiny was that the petitioner had not filed Form 10B within the stipulated period. It is in the aforesaid context that on 07.08.2023, the petitioner filed an application under Section 119 (2) (b) of the Act explaining the reasons for the delay. The petitioner explained that its audit had got delayed on account of medical issues in the family of its accountant. 6. Whilst the petitioner's application was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g of Form 10B had been delayed. Undisputedly, Form 10B is required to be based on audited accounts. In the present case, the audit of the petitioner's final account was delayed on account of ill health of the son of the petitioner's accountant. The petitioner had explained that during the month of September, 2022 the petitioner's accountant was unavailable and therefore, the audit of the petitioner society in respect of financial year ending 31.03.2022 was completed on 07.11.2022. The petitioner filed the Form 10B immediately on the said date. 10. In order to establish that the hardship faced by the petitioner is genuine, the petitioner had forwarded the report of a doctor [Doctor V.S.R. Murthy] who was treating the son [named Siddharth & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... posing 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 hereinabove 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 other, cause of substantial justice dese ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... settled principle that every power is coupled with a duty to exercise the same. There may not be any ground to accord a wider interpretation to the expression 'genuine hardship' but it cannot be disputed that in cases where an assessee is able to establish genuine hardship, the concerned authority must exercise its power accorded for the said purpose. 14. The impugned order indicates the documents furnished by the petitioner and also sets out the explanation provided by the petitioner. The same are reproduced below: "3. On perusal of the application it is seen that the delay in filing the audit report by the assessee was owing to the fact that the accountant of the society who was assisting in the statutory audit of the society was not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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