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TMI Blog2025 (5) TMI 1500X X X X Extracts X X X X X X X X Extracts X X X X ..... 227 of the Constitution of India with the following prayer(s): "In view of the above circumstances, it is most respectfully prayed that this Hon'ble Court may graciously be pleased to: a) Admit the Writ application; b) Issue a writ in the nature of Certiorari or any other appropriate writ, Order or direction, calling for the records of the Petitioner's case and after going into the legality and propriety thereof to: i. quash and set aside the impugned order of rejection dated 17.02.2025 under Annexure-1 passed by the opposite party No.2; ii. quash and set aside the impugned intimation/order under Section 143(1) of the Income Tax At, 1961 dated 30.11.2021 under Annexure-2 passed by the opposite party No.3; and iii. condone the delay in filing the Audit Report (Form 10B) under Annexure-3 Series for the Assessment Year 2020-21. c) And if the opposite parties fail to show cause or sufficient cause, then the rule may be made absolute; d) And further your Lordships may please to pass such other order/orders as your Lordships may deem fit and proper; And for this act of kindness, the petitioner as in duty bound shall ever pray." Facts: 2. The petitioner, Charitable S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nbsp; while processing the return of income, such claim of exemption was disallowed on the ground that the Audit Report was not filed within the period specified under the statute, as a result of which demand to the tune of Rs.22,01,930/- was raised by issuing intimation dated 30.11.2021 under Section 143 (Annexure-2). 2.4. Citing such bona fide reason preventing the petitioner from filing the Audit Report on or before 15.02.2021, it is stated that the delay of seventy-six days in filing said Audit Report in Form 10B should have been ignored. Hence, the petitioner on 03.12.2024 filed an application before the Commissioner of Income Tax (Exemption), Hyderabad-opposite party No.2 under Section 119(2)(b) of the IT Act with prayer to condone the delay in filing such Audit Report. In furtherance thereof, on the information being sought for by the Department, vide notice dated 05.12.2024, compliance was made on 18.12.2024. Nevertheless, the opposite party No.2 without affording opportunity to the petitioner rejected the application for condonation of delay on 17.02.2025, which is subject-matter of challenge in the instant writ petition. Hearing: 3. This matter came up before this Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation for condonation of delay inasmuch as no detail has been provided by the concerned Authority in the order. To illustrate, the date of Judgment is not available nor the reference of its reporting. As it seems the said referred Judgment does not relate to situation like the present one. iii. The decisions of Supreme Court in Ranka Vrs. Rewa Coalfields Ltd., AIR 1962 SC 361 and Madras High Court in the case of Madhu Dadha Vrs. ACIT, 317 ITR 458 have been referred to by the Authority to say that each day's delay needed to be explained and the delay could be allowed on "genuine hardship". The ratio of said judgments has not been appropriately applied inasmuch as the Hon'ble Supreme Court in its Order dated 10.01.2022 rendered in Miscellaneous Application No.21 of 2022 in Miscellaneous Application No.665 of 2021 in Suo Motu Writ Petition (C) No.3 of 2020 acknowledged plight of litigants and issued directions granting 90 days' from 01.03.2022 for compliance of statutory requirement. He placed reliance on the following observation made by one of us (Hon'ble Shri Harish Tandon, Chief Justice) in the case of Joharimal High School, Cuttack Vrs. The Principal Commissioner of Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection order cannot be sustained in the eye of law. 5. Sri Avinash Kedia, learned Junior Standing Counsel appearing for the Department-opposite parties strongly opposed the contention of the learned counsel for the petitioner and sought to justify the reason assigned by the Commissioner of Income Tax (Exemption). 5.1. He strenuously argued in favour of the Department to contend that time schedule specified under the IT Act and rules framed thereunder is sacrosanct and there cannot be any deviation therefrom without extension granted under proper notification/circular. The petitioner cannot be allowed to file documents at his sweet wish. The petitioner was conscious and had knowledge about the compliance of statutory requirement within the time frame, failing which the claim for exemption would get rejected. The Commissioner of Income Tax (Exemption) did reject the claim having regard to instructions and decisions on the subject. 5.2. Having applied his mind rationally, the Order dated 17.02.2025 of the Commissioner of Income Tax (Exemption) cannot be interfered with. Doing so would be taking away his discretionary power to consider condonation of delay in filing Audit Report in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been granted registration under Section 12AA or has obtained registration at any time under Section 12A [as it stood before its amendment by the Finance (No. 2) Act, 1996 (33 of 1996)], and, subsequently, it has adopted or undertaken modifications of the objects which do not conform to the conditions of registration, in the prescribed form and manner, within a period of thirty days from the date of said adoption or modification, to the Principal Commissioner or Commissioner and such trust or institution is registered under Section 12AA; (b) where the total income of the trust or institution as computed under this Act without giving effect to the provisions of Section 11 and Section 12 exceeds the maximum amount which is not chargeable to income-tax in any previous year, the accounts of the trust or institution for that year have been audited by an accountant as defined in the Explanation below sub-Section (2) of Section 288 before the specified date referred to in Section 44AB and the person in receipt of the income furnishes along with the return of income for the relevant Assessment Year the report of such audit in the prescribed form duly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the foregoing power,- (a) the Board may, if it considers it necessary or expedient so to do, for the purpose of proper and efficient management of the work of assessment and collection of revenue, issue, from time to time (whether by way of relaxation of any of the provisions of sections 115P, 115S, 115WD, 115WE, 115WF, 115WG, 115WH, 115WJ, 115WK, 139, 143, 144, 147, 148, 154, 155, 158BFA, sub-section (1A) of Section 201, sections 210, 211, 234A, 234B, 234C, 234E, 270A, 271, 271C, 271CA and 273 or otherwise), general or special orders in respect of any class of incomes or fringe benefits or class of cases, setting forth directions or instructions (not being prejudicial to assessees) as to the guidelines, principles or procedures to be followed by other income tax authorities in the work relating to assessment or collection of revenue or the initiation of proceedings for the imposition of penalties and any such order may, if the Board is of opinion that it is necessary in the public interest so to do, be published and circulated in the prescribed manner for general information; (b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after expiry of the period specified for filing Audit Report in Form 10B in terms of Section 12A read with Rule 17B. 7.2. Citing pandemic situation and extension of period of limitation by the Hon'ble Supreme Court exercising suo motu power with respect to general and special laws for compliance of statutory requirement by litigants in view of difficulty faced by them due to shutdown imposed by the Government, the petitioner approached the Authority concerned by making an application dated 03.12.2024 with a prayer to condone the delay in filing the Audit Report in Form 10B along with return of income under Section 139 of the IT Act. It is also apprised by the petitioner before the Commissioner of Income Tax that due to this pandemic situation and as per instructions issued by the Government of Odisha with regard to shutdown and restricted movement, the assessee has been functioning its administrative office with limited staff, which caused the delay in submission of Audit Report and return of income within the period specified. 7.3. A Division Bench of this Court in Basanti Shial Vrs. Proper Officer, (2022) 106 GSTR 419 = 2022 SCC OnLine Ori 4150 took cognizance of pandemic situ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of vaccine and medication to arrest its spread, declares with pride 'Hide from me to be safe' and 'Keep distance from my carrier to be alive'. The honourable Prime Minister of India and honourable Chief Minister of our State have taken well conceived, well thought of, justly considered, tough and hard steps to contain the crisis arising out of the virus. 3. Staying at home to be safe and maintaining social distance are the only ways to check spread of the virus. India countries cross sections of people of various religion, faith, cast, creed and colour. Law abidingness, however, has never been a natural habit of a part of the population. Irresponsibility is writ large when it comes to conforming to certain sets of discipline and order. In such a situation, locking down the entire country to keep the people safe was probably the only remedy available, though outcome of a very tough and difficult decision. We, therefore, are one in our view that executive Government is best fitted and best suited to contain the crisis arising out of the virus in its own novel and extraordinary way, provided everything is done within the constitutional framework and there is proper co- ordination ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irm or any individual or person is/are, by the order of this court or any court subordinate to it or the Tribunals, required to do a particular thing or carry out certain direction in a particular manner in a time frame, which expired or is going to expire at any time, during the period of lock down or the extended lock down, time for compliance of such order shall stand extended up to 18th June 2020, unless specifically directed otherwise.' ***" Aforesaid arrangement made vide Order dated May 5, 2020 in Bijaya Kumar Ragada Vrs. State of Odisha, W.P.(C) No. 9095 of 2020 was being extended on various dates and vide order dated November 16, 2020 this court observed as follows : "3. The aforesaid order was extended subsequently on June 11, 2020 till July 15, 2020 and thereafter on July 15, 2020 the said protections were extended till August 31, 2020 and on August 31, 2020 the protection was extended up to October 15, 2020. *** 5. In view of the above, protection granted by this court vide aforesaid order dated May 5, 2020 passed in this case in sub-paras (i) to (xii) of para 7 is extended up to November 25, 2020 except to the extends with the modification specifically made. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecial laws in respect of all judicial or quasi- judicial proceedings, whether condonable or not, shall stand extended till further orders. It is further clarified that the period from March 14, 2021 till further orders shall also stand excluded in computing the periods prescribed under sections 23(4) and 29A of the Arbitration and Conciliation Act, 1996, Section 12A of the Commercial Courts Act, 2015 and provisos (b) and (c) of Section 138 of the Negotiable Instruments Act, 1881 and any other laws, which prescribe period(s) of limitation for instituting proceedings, outer-limits (within which the court or Tribunal can condone delay) and termination of proceedings. We have passed this order in exercise of our powers under article 142 read with article 141 of the Constitution of India. Hence it shall be a binding order within the meaning of article 141 on all courts/Tribunals and authorities.' 2.2 The matter of extension of period of limitation under Section 168A of the CGST Act, 2017 was deliberated in the 43rd Meeting of GST Council. Council, while providing various relaxations in the compliances for taxpayers, also recommended that wherever the timelines for actions have been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds issuance of show-cause notice, granting time for replies and passing orders, the present orders of the honourable Supreme Court may not cover them even though they are quasi-judicial proceedings as the same has only been made applicable to matters relating to petitions/applications/suits, etc. 4. On the basis of the legal opinion, it is hereby clarified that various actions/compliances under GST can be broadly categorised as follows : (a) Proceedings that need to be initiated or compliances that need to be done by the taxpayers : These actions would continue to be governed only by the statutory mechanism and time-limit provided/ extensions granted under the statute itself. Various orders of the honourable Supreme Court would not apply to the said proceedings/compliances on part of the taxpayers. (b) Quasi-judicial proceedings by tax authorities : The tax authorities can continue to hear and dispose off proceedings where they are performing the functions as quasi- judicial authority. This may, inter alia, include disposal of application for refund, application for revocation of cancellation of registration, adjudication proceedings of demand notices, etc. Similarly, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0, published in the Odisha Gazette Extraordinary No. 856, dated June 11, 2020 and subsequently the same has been enacted as the Odisha Goods and Services Tax (Amendment) Act, 2020 (Odisha Act 5 of 2020) and was given effect from March 31, 2020. 16. As noticed above the Central Government as also the State Government in line with the judgment of the honourable Supreme Court have issued orders/ notifications/circulars giving relaxation to the taxpayers for various compliances under the GST laws. The honourable Supreme Court disposed of Cognizance for Extension of Limitation, In re, Suo Motu Writ Petition (Civil) No. 3/2020 on March 8, 2021 reported in (2021) 432 ITR 206 (SC) = (2021) 5 SCC 452 = (2021) 3 SCC (Civ) 40 = (2021) 2 SCC (Cri) 615 = (2021) 2 SCC (L&S) 50 with the following observations and directions (pages 208 and 209 in 432 ITR) : '1. Due to the onset of the COVID-19 pandemic, this court took suo motu cognizance of the situation arising from difficulties that might be faced by the litigants across the country in filing petitions/applications/suits/appeals/all other proceedings within the period of limitation prescribed under the general law of limitation or und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntainment zones, to state : 'Regulated movement will be allowed for medical emergencies, provision of essential goods and services, and other necessary functions, such as, time bound applications, including for legal purposes, and educational and job-related requirements.' ***" 7.4. In Atlas PVC Pipes Limited Vrs. State of Odisha, (2022) 106 GSTR 433 (Ori) = 2022 SCC OnLine Ori 2182 it has been stated thus: "6.2. Accepting notice on behalf of the opposite parties, namely the Commissioner of CT & GST, the Joint Commissioner of State Tax (Appeal), CT & GST Territorial Range, Cuttack-I and CT & GST Officer, Cuttack-I Central Circle, Mr. Mishra, learned Additional Standing Counsel, therefore, has made fair admission of the fact that the defect as pointed out by the CT & GST Organisation, being technical, the pedantic reason ascribed by the appellate authority cannot be countenanced on the face of decision of this court vide Order dated June 7, 2021 rendered in the case of Shree Jagannath Traders Vrs. Commissioner of State Tax, Odisha, Cuttack (2021) 94 GSTR 46 (Orissa), (W. P. (C) No. 15061 of 2021), wherein identical issue as that of the present case fell for consideration. This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... powers under Section 168A of the OGST Act read with judgment(s)/order(s) of the honourable Supreme Court rendered in the case of In Re : Cognizance for Extension of Limitation, SMW(C) No. 3 of 2020. 6.6. It may be worthwhile to reiterate what has been noticed in the case of Smt. Basanti Shial v. Proper Officer, Additional CT & GST Officer, CT & GST Circle, Balasore, (2022) 106 GSTR 419 (Orissa), W.P.(C) No. 7490 of 2021 in connection with extension of period of limitation envisaged under Section 107. *** 6.7. The honourable Supreme Court of India in the case of Cognizance for Extension of Limitation, In re being Miscellaneous Application No. 21 of 2022 : In Miscellaneous Application No. 665 of 2021 in Suo Motu Writ Petition (C) No. 3 of 2020 with Miscellaneous Application No. 29 of 2022 in Miscellaneous Application No. 665 of 2021 in Suo Motu Writ Petition (C) No. 3 of 2020. Vide Order dated January 10, 2022 reported in (2022) 441 ITR 722 (SC) = (2022) 3 SCC 117 ; (2022) 1 SCC (Cri) 580 = (2022) SCC OnLine SC 27 pronounced as follows (pages 724 and 725 in 441 ITR) : '1. In March, 2020, this court took suo motu cognizance of the difficulties that might be faced by the litigan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urable court may deem fit and proper. 5. Taking into consideration the arguments advanced by learned counsel and the impact of the surge of the virus on public health and adversities faced by litigants in the prevailing conditions, we deem it appropriate to dispose of M. A. No. 21 of 2022 with the following directions : (I) The order dated March 23, 2020 is restored and in continuation of the subsequent orders dated March 8, 2021, April 27, 2021 and September 23, 2021 it is directed that the period from March 15, 2020 till February 28, 2022 shall stand excluded for the purposes of limitation as may be prescribed under any general or special laws in respect of all judicial or quasi- judicial proceedings. (II) Consequently, the balance period of limitation remaining as on October 3, 2021, if any, shall become available with effect from March 1, 2022. (III) In cases where the limitation would have expired during the period between March 15, 2020 till February 28, 2022, notwithstanding the actual balance period of limitation remaining, all persons shall have a limitation period of 90 days from March 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be excluded for the purposes of limitation as may be prescribed under any General or Special Laws in respect of all judicial or quasi-judicial proceedings. The Commercial Courts Act, 2015 being a Special Law, the said order shall also be applicable with respect to the limitation prescribed under the Commercial Courts Act, 2015 also. 6. In view of the above and for the reasons stated above and more particularly when the 120 days period expired in the present case on 09.05.2020 which was during the aforesaid period as prescribed by this Court in the aforesaid order, the High Court ought to have excluded the aforesaid period for the purpose of filing the written statement and ought to have permitted to take the written statement on record. The impugned judgment and order passed by the High Court refusing to condone the delay and take on record the written statement is hereby quashed and set aside. It is directed that the written statement, already filed, be taken on record and the same be considered in accordance with law." 7.6. This Court in the case of Jyoti Ranjan Panda Vrs. Additional Commissioner of State Tax (Appeal), Balasore, W.P.(C) No.41961 of 2021, in its Order dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... territorial jurisdiction. Under Article 227 it has jurisdiction over all courts and tribunals throughout the territories in relation to which it exercises jurisdiction. It would be anomalous to suggest that a tribunal over which the High Court has superintendence can ignore the law declared by that court and start proceedings in direct violation of it. If a tribunal can do so, all the subordinate courts can equally do so, for there is no specific provision, just like in the case of Supreme Court, making the law declared by the High Court binding on subordinate Courts. It is implicit in the power of supervision conferred on a superior tribunal that all the tribunals subject to its supervision should conform to the law laid down by it. Such obedience would also be conducive to their smooth working : otherwise, there would be confusion in the administration of law and respect for law would irretrievably suffer. We, therefore, hold that the law declared by the highest court in the State is binding on authorities or tribunals under its superintendence, and that they cannot ignore it either in initiating a proceeding or deciding on the rights involved in such a proceeding. If that be so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of upto 365 days. 1.2. the Pr. Chief Commissioners of Income Tax ('Pr. CsIT')/ Chief Commissioner of Income Tax ('CsIT')/ Director Generals of Income Tax ('DGsIT') to admit and deal with applications for condonation of delay in filing Form No.9A/10/10B/10BB for Assessment Year 2018-19 and subsequent Assessment Years where there is a delay of more than 365 days. 2. The Pr. CCsIT/CCsIT/Pr. CsIT/CsIT while entertaining such applications for condonation of delay in filing Form No.9A/10/10B/10BB, shall satisfy themselves that the applicant was prevented by reasonable cause from filing such Forms before the expiry of the time allowed and the case is of genuine hardship on merits. 2.1. Further, in respect of Form No.10, the Pr. CCsIT/CCsIT/Pr. CsIT/CsIT as the case may be, shall also satisfy themselves that the amount accumulated or set apart has been invested or deposited in any one or more of the forms or modes specified in sub-section (5) of Section 11 of the Act. 3. No application for condonation of delay in filing of Form No.9A/10/10B/10BB shall be entertained beyond three years from the end of the Assessment Year for which such application is made. The time limit for filing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he statutory requirement and by virtue of intervention of the Hon'ble Supreme Court of India suo motu, the Audit Report besides Return under Section 139 of the IT Act was submitted, the Commissioner of Income Tax referred to Circular No.9/2015, dated 09.06.2015, and omitted to take into consideration Circular dated 18.11.2024, to deny relief. This Court finds force in the submission of Sri Chitrasen Parida, learned Advocate for the petitioner that after the Circular dated 09.06.2015 being superseded, it ceased to have operation. The Commissioner of Income Tax apparently proceeded erroneously by placing reliance on Circular dated 09.06.2015. The application for condonation of delay in filing Audit Report should have been admitted in terms of Circular dated 18.11.2024 and decided. The Order dated 17.02.2025, thus, does suffer from illegality inasmuch as the Circular dated 09.06.2015 has been superseded by the later Circular. On the date of passing Order refusing to condone the delay, said Circular dated 09.06.2015 did cease to exist. Therefore, the impugned order of the Commissioner of Income Tax (Exemption) cannot withstand judicial scrutiny. 8.5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its effect. Webster's Third New International Dictionary defines the word 'supersession' to mean 'the state of being superseded', 'removal' and 'replacement'. P. Ramanatha Aiyar's Advanced Law Lexicon defines 'superseded' as 'set aside' and 'replaced by'. The view of this Court in some of the decisions is that the expression 'supersession' has to be understood to amount 'to repeal' and when notification is repealed, the provisions of Section 6 of the General Clauses Act would not apply to notifications. 42. In State of Orissa Vrs. Titaghur Paper Mills Company Ltd., 1985 Supp SCC 280 : AIR 1985 SC 1293, the specific question whether on 'supersession' of a notification, the liability to tax for a period prior to the supersession was wiped out or not, directly arose and was considered. This Court came to the conclusion that the previous liability to tax for a period prior to the supersession was not wiped out In our view, the results that flow from changes in the law by way of amendment, 'repeal', 's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned rule be held to be invalid, the old Rule 16 gets revived, so that the tax assessed on the basis of that rule will be good. The Court rejected this submission by holding that: 'Once the old rule has been substituted by the new rule, it ceases to exist and it does not automatically get revived when the new rule is held to be invalid'. On that analogy, it was argued that, if we hold that the Prohibition Order of 1950 was invalid, the previous Prohibition Order of 1119 cannot be held to be revived. This argument ignores the distinction between supersession of a rule, and substitution of a rule. In the case of 1963 Supp (2) SCR 435 = AIR 1963 SC 928 (supra), the new Rule 16 was substituted for the old Rule 16. The process of substitution consists of two steps. First, the old rule is made to cease to exist, and, next, the new rule is brought into existence in its place. Even if the new rule be invalid, the first step of the old rule ceasing to exist comes into effect and it was for this reason that the Court held that, on declaration of the new rule as invalid, the old rule could not be held to be revived'. In the above mentioned passage, this Court merely explained the argumen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been passed with rational application of mind. 8.8. Whereas the petitioner has assigned the reason for being prevented during 2021, the restricted movement declared by the State Government during pandemic situation is sufficient ground for taking into consideration as a factor for condonation of delay. Plausibility of reason that it was difficult for the petitioner to come down from Patnagarh in Bolangir district to Bhubaneswar during the said period should have been appreciated by the Commissioner of Income Tax. The Parliament as also the State Legislature being conscious of such situation promulgated Ordinance(s) and introduced the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 to put in place devise to meet exigencies during force majeure. Said Act enabled extension of statutory limitations in different statutes including the Income Tax Act and the Goods and Services Tax Act. 8.9. In terms of Circular dated 18.11.2024, the Income Tax Authorities inter alia Commissioner of Income Tax is required to ensure that: i. The assessee was prevented by "reasonable cause" from filing the return of income within the due date. ii. The case demonstrat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ever be in difficulty as he can sell those assets and pay the amount of interest levied. 18. The ingredients of genuine hardship must be determined keeping in view the dictionary meaning thereof and the legal conspectus attending thereto. For the said purpose, another well-known principle, namely, a person cannot take advantage of his own wrong, may also have to be borne in mind. The said principle, it is conceded, has not been applied by the courts below in this case, but we may take note of a few precedents operating in the field to highlight the aforementioned proposition of law. [See Priyanka Overseas (P) Ltd. Vrs. Union of India, 1991 Supp (1) SCC 102 (SCC at pp. 122-23, para 39); Union of India Vrs. Major General Madan Lal Yadav (Retd.), (1996) 4 SCC 127 (SCC at p. 142, paras 28-29); Ashok Kapil Vrs. Sana Ullah, (1996) 6 SCC 342 (SCC at p. 345, para 7); Sushil Kumar Vrs. Rakesh Kumar, (2003) 8 SCC 673 (SCC at p. 692, para 65, first sentence); Kusheshwar Prasad Singh Vrs. State of Bihar, (2007) 11 SCC 447 (SCC at pp. 451-52, paras 13-14 and 16).] 19. Thus, the said principle, in our opinion, should be applied even in a case of this nature. A statutory authority despite rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one delay to enable the authorities to do substantive justice to the parties by disposing of the matters on the merits. 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 the merits after hearing the parties. When substantial justice and technical considerations are pitted against each other, the cause of substantial justice deserves to be preferred for the other side cannot claim to have a vested right in injustice being done because of a non-deliberate delay. There is no presumption that delay is occasioned deliberately, or on account of culpable negligence, or on account of mala fides. A litigant does not stand to benefit by resorting to delay. In fact he runs a serious ris ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ying for condonation of delay, does not stand to benefit by lodging erroneous returns. Refusing to condone the delay can result in a meritorious matter being thrown out at the very threshold and the 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 deserves to be preferred, for the other side cannot claim to have vested right in injustice being done because of a non- deliberate action. There is no presumption that a delay in correcting an error or responding to a notice of invalid return received under Section 139(9) of the Act is occasioned deliberately or on account of culpable negligence or on account of mala fides. A litigant does not stand to benefit by resorting to delay. In fact, he runs a serious risk. The approach of the authority should be justice-oriented so as to advance cause of justice. If the case of an applicant is genuine, mere delay should not defeat the claim. We find support for this view in Sitaldas K. Motwani Vrs. Director Gener ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d.' 15. The phrase 'genuine hardship' used in Section 119(2)(b) should have been construed liberally even when the petitioner has complied with all the conditions mentioned in Circular dated October 12, 1993. The Legislature has conferred the power to condone delay to enable the authorities to do substantive 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 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 deserves to be preferred for the other side cannot claim to have vested right in injustice being done becau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad along with the Income-tax Rules, 1962 and in particular the report in the prescribed forms of return of income then in vogue which required an assessee to attach the TDS certificates for the refund being claimed. The explanation furnished is that on account of shifting of registered office, it is possible that TDS certificates which may have been addressed to the earlier office, got misplaced. There is nothing counterfeit or bogus in the explanation offered. It cannot be said that the petitioner has obtained any undue advantage out of delay in filing of Income-tax returns. As observed in the case of Sitaldas K. Motwani Vrs. Director General of Income-tax, (2010) 323 ITR 223 (Bom) = 2009 SCC OnLine Bom 2195, there is no presumption that delay is occasioned deliberately or on account of culpable negligence or on account of mala fides. It cannot be said that in this case the petitioner has benefited by resorting to delay. In any case when substantial justice and technical consideration are pitted against each other, the cause of substantial justice deserves to prevail without in any manner doing violence to the language of the Act. ***" 8.15. As it appears the Commissioner of Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccurs and it cannot be claimed ex-post facto. There may be a FM situation affecting the purchase organisation only. In such a situation, the purchase organisation is to communicate with the supplier along similar lines as above for further necessary action. If the performance in whole or in part or any obligation under this contract is prevented or delayed by any reason of FM for a period exceeding 90 (Ninety) days, either party may at its option terminate the contract without any financial repercussion on either side. 2. A doubt has arisen if the disruption of the supply chains due to spread of corona virus in China or any other country will be covered in the Force Majeure Clause (FMC). In this regard it is clarified that it should be considered as a case of natural calamity and FMC may be invoked, wherever considered appropriate, following the due procedure as above. (Kotluru Narayana Rèddy) Deputy Secretary to the Govt. of India Tel. No.24621305 Email: kn.reddy(c)gov.in" 8.18. Reference in this regard may be had to Dhanarajamal Govindram Vrs. Shamji Kalidas & Co., AIR 1961 SC 1285 = (1961) 3 SCR 1020, wherein it has been described that, "McCardie, J. in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the inspecting officer of being infected with any such disease. 2A. Powers of Central Government.- When the Central Government is satisfied that India or any part thereof is visited by, or threatened with, an outbreak of any dangerous epidemic disease and that the ordinary provisions of the law for the time being in force are insufficient to prevent the outbreak of such disease or the spread thereof, the Central Government may take such measures, as it deems fit and prescribe regulations for the inspection of any bus or train or goods vehicle or ship or vessel or aircraft leaving or arriving at any land port or aerodrome, as the case may be, in the territories to which this Act extends and for such detention thereof, or of any person intending to travel therein, or arriving thereby, as may be necessary. 3. Penalty.- (1) Any person disobeying any regulation or order made under this Act shall be deemed to have committed an offence punishable under Section 188 of the Indian Penal Code (45 of 1860). (2) Whoever,- (i) commits or abets the commission of an act of violence against a healthcare service personnel; or (ii) abets or cause damage or loss to any property, shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g from natural or man-made causes, or by accident or negligence which results in substantial loss of life or human suffering or damage to, and destruction of, property, or damage to, or degradation of, environment, and is of such a nature or magnitude as to be beyond the coping capacity of the community of the affected area; (e) "disaster management" means a continuous and integrated process of planning, organising, coordinating and implementing measures which are necessary or expedient for- (i) prevention of danger or threat of any disaster; (ii) mitigation or reduction of risk of any disaster or its severity or consequences; (iii) capacity-building; (iv) preparedness to deal with any disaster; (v) prompt response to any threatening disaster situation or disaster; (vi) assessing the severity or magnitude of effects of any disaster; (vii) evacuation, rescue and relief; (viii) rehabilitation and reconstruction; *** 24. Powers and functions of State Executive Committee in the event of threatening disaster situation.- For the purpose of, assisting and protecting the community affected by disaster or providing relief to such community or, preventing or combating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able to be proceeded against in accordance with the provisions of Section 51 to 60 of the Disaster Management Act, 2005, the Epidemic Diseases Act, 1897 and Regulations issued thereunder besides legal action under Section 188 of the Indian Penal Code and other legal provisions as applicable." 8.22. The Central Board of Direct Taxes have extensively relaxed the datelines for compliance of different provisions under the IT Act read with rules framed thereunder for COVID-19-related expenses, it has treated the pandemic as a significant disruption akin to force majeure. These measures were tailored to address specific challenges rather than invoking a blanket force majeure clause. Noticeably Circular No. 8/2021 has extended the period for filing returns for the Assessment Year 2020-21 under Section 139 of the IT Act. Said Circular reads thus: "F. No.225/49/2021/ITA-II Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, Dated 30th April, 2021 Subject: Extension of time lines related to certain compliances by the Taxpayers under the Income-tax Act 1961 1. In view of severe pandemic, the Central Board of Direct Taxes, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onclusion: 9. Since the petitioner was required to file the Audit Report in Form 10B in terms of Section 12A of the IT Act read with Rule 17B of the IT Rules on or before 15.01.2021 with respect to the Assessment Year 2020-21, but the same was filed on 31.03.2021 with a delay of seventy-six days, the same would be treated to be filed within the period stipulated under the Circular No.16/2024, dated 18.11.2024 and taking cue from the observations made in Basanti Shial Vrs. Proper Officer, (2022) 106 GSTR 419= 2022 SCC OnLine Ori 4150 and Atlas PVC Pipes Limited Vrs. State of Odisha, (2022) 106 GSTR 433 (Ori) = 2022 SCC OnLine Ori 2182 referring to extension of period of limitation as considered by the Hon'ble Supreme Court in Suo Motu Writ Petition (C) No.3 of 2020, this Court is of the considered view that sufficient cause has been shown that the petitioner had "genuine hardship" in complying with the statutory requirement. Therefore, it is warranted to be observed that the application for condonation of delay of seventy-six days in filing Audit Report in Form 10B should have received liberal consideration and instead of showing pedantic approach the Commissioner of Income Tax oug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sposal of the writ petition, all pending interlocutory applications, if any, shall stand disposed of. Footnote :- 1. In business circles, 'force majeure' describes those uncontrollable events or circumstances beyond human control such as an event described as an act of God (like natural calamity, war, strike, riots, etc.) that are not the fault of any party and that make it difficult or impossible to carry out normal business and perform the contractual liability despite of readiness and willingness. Generally, on the activation of the Force Majeure clause in the contract, it absolves both parties from contractual liability or obligation under the contract. The relevant provisions are embodied under Sections 32 and 56 of the Indian Contract Act, 1872. : Source: www.livelaw.in/law-firms/articles : COVID-19 Crisis: Force Majeure And Impact On Contracts From An Indian Law Perspective. 2. The principle enunciated by the Hon'ble Supreme Court of India in East India Commercial Co. Ltd. Vrs. Collector of Customs, 1962 SCC OnLine SC 142 = (1963) 3 SCR 338 = AIR 1962 SC 1893 has been followed by this Court in Chowhan Machinery Mart Vrs. State of Orissa, (2009) 19 VST 178 (Ori) = 2008 SCC ..... X X X X Extracts X X X X X X X X Extracts X X X X
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