Court holds that COVID-19–related disruptions constituted “genuine hardship” under Section 119(2)(b), faulting the department for mechanically rejecting the taxpayer’s request
Meetu Kumari | Dec 8, 2025 |
High Court: 13-Day Delay Not Fatal; COVID Constraints Justify Condonation for 80-IBA Deduction
Rajgreen Infralink LLP, a real estate development LLP in Surat, was required to file its income-tax return for AY 2021-22 by 31.10.2021. Because of COVID-19, the Central Board of Direct Taxes (CBDT) extended the due date to 15.03.2022. The LLP ultimately filed its return with a delay of 13 days. Since the return was belated, the Centralised Processing Centre denied the LLP’s claim for deduction of Rs. 4.35 crore under Section 80-IBA in the intimation issued under Section 143(1).
The LLP applied to the Principal Commissioner under Section 119(2)(b) seeking condonation of delay, explaining that prolonged COVID-19 waves, office capacity restrictions, and on-site labour management obligations hampered timely compilation of bills, vouchers, and accounting records. The authority, however, rejected the request, citing CBDT Circular 09/2015 and holding that no “genuine hardship” was shown. Aggrieved, the LLP approached the High Court.
Issue Raised: Whether the Principal Commissioner erred in refusing to condone a 13-day delay in filing the return under Section 119(2)(b), despite COVID-19–related hardships cited by the taxpayer.
HC Decided: The High Court allowed the petition, quashed the rejection order, and remanded the condonation application for fresh consideration.
The Bench held that Circular 09/2015, which pertains only to delayed refund claims and carry-forward-loss claims, had no relevance to the LLP’s case. The Commissioner failed to meaningfully examine the detailed COVID-related constraints cited by the petitioner, as they squarely fall within the ambit of “genuine hardship”.
The Court relied on Jay Vijay Express Carriers, Vrushti Aulkumar Shah, and Shailesh Vitthalbhai Patel, emphasising that Section 119(2)(b) must be construed liberally to prevent deserving claims from being defeated merely on technical delay. The Commissioner’s observation that condonation could not be granted because it would allow a Section 80-IBA deduction was also rejected as untenable.
Thus, the High Court restored the condonation application to the Commissioner’s file and directed that a fresh, reasoned order be passed within 12 weeks.
To Read Full Judgment, Download PDF Given Below
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