IMPORTANT POINT
The Supreme Court's directives on limitation during the COVID-19 pandemic are binding and must be considered in tax return filings.

ORDER :

G.NARENDAR, J.

Heard learned counsel, Sri Kedarnath, representing on behalf of learned counsel Sri P.Rama Sharana Sharma, representing the learned counsel for appellants, Sri Y.V.Anil Kumar, learned Central Government Counsel, representing for the 1st respondent and Sri Vijay Kumar Punna, learned Central Government standing counsel representing for the 2nd respondent.

2. The short point that arises in all the petitions is that whether the authority was right in rejecting the applications preferred under Section 119(2)(b) of the Act seeking to condone the delay in filing the returns for the assessment year 2021-2022. We have perused the order passed by the competent authority on the applications. The applications by the assesse were preferred invoking the provisions of clause (b) of sub-section 2 of section 119 of the Income Tax Act, 1961, praying to condone the delay in the filing of returns for the assessment year 2021-2022 and thereby, enabling them to claim deduction under Section 80P of the Act.

3. The status of petitioners’ society is not disputed. The petitioners’ society are all Primarily Agricultural Cooperative Societies(PACS) registered under the Cooperative Societies Act and are engaged in the business of extending financial assistance (loans) to its members. The fact that the society is part of the credit cooperative structure and extends financial assistance only to its members is a fact that can be prima facie inferred from the pleadings.

4. The case of the petitioners is that during the period from around January, 2020 and there onwards, the presence of corona virus came to be detected in the country and a notification came to be issued in March, 2020 by the competent authority under National Disaster Management Act whereby the rampaging corona virus was declared as a calamity and orders came to be issued, drastically regulating daily life of the citizens whereby citizens were even prohibited from venturing out doors. It is also not in dispute that the prohibition continued to be in operation till the end of the year 2020 and 2021 also and it is common knowledge that the virus started withering in the fourth quarter of 2021.

5. The fact that normal life was completely disrupted and thrown out of gear needs no reiteration. In fact, that said aspect of the matter came to be taken up by the Hon’ble Apex Court in Suo Motu Writ Petition (C) No.3 of 2020. The Hon’ble Apex Court acknowledging the circumstances and the statutory requirement, severely curtailing moment of men and material and also severe curtailment of modes of transportation more especially public transports and addressing the unique situation of limitation, was pleased to issue orders/directions whereby the limitations under the various Acts, Statutes, Rules etc., came to be extended from time to time and the last such order came to be passed on 10.01.2022, which reads as under:

“1. In March, 2020, this Court took Suo Motu cognizance of the difficulties that might be faced by the litigants in filing petitions/applications/suits/ appeals/ all other quasi proceedings within the period of limitation prescribed under the general law of limitation or under any special laws (both Central and/or State) due to the outbreak of the COVID-19 pandemic.

2. On 23.03.2020, this Court directed extension of the period of limitation in all proceedings before Courts/Tribunals including this Court w.e.f.15.03.2020 till further orders. On 08.03.2021, the order dated 23.03.2020 was brought to an end, permitting the relaxation of period of limitation between 15.03.2020 and 14.03.2021. While doing so, it was made clear that the period of limitation would start from 15.03.2021.

3. Thereafter, due to a second surge in COVID-19 cases, the Supreme Court Advocates on Record Association (SCAORA) intervened in the Suo Motu proceedings by filing Miscellaneous Application No. 665 of 2021 seeking restoration of the order dated 23.03.2020 relaxing limitation. The aforesaid Miscellaneous