IMPORTANT POINT
The court established that genuine hardship must be considered in applications for condonation of delay in filing tax-related documents, emphasizing the need for a compassionate approach by authorities.

JUDGMENT :

BHARGAV D. KARIA, J.

1. Heard learned Senior Advocate Mr. Tushar Hemani with learned advocate Ms.Vaibhavi Parikh for the petitioner and learned Senior Standing Counsel Ms.Maithili Mehta for the respondent.

2. Rule, returnable forthwith. Learned Senior Standing Counsel Ms.Maithili Mehta waives service of notice of rule for and on behalf of the respondent.

3. By this petition under Article 227 of the Constitution of India, the petitioner has challenged the order dated 09.09.2019 passed by the respondent-Commissioner of Income Tax (Exemption) under Section 119(2)(b) of the Income Tax Act, 1961 (for short ‘the Act’) whereby, the application for condonation of delay in filing Form No.10B for Assessment Year 2015-16 is rejected.

4.1. The brief facts of the case are that, the petitioner-Trust is engaged in charitable and religeous activities. The petitioner-Trust is duly registered under the provisions of the Bombay Public Trust Act, 1950 and is also registered under Section 12A of the Act on 07.08.1979.

4.2. It is the case of the petitioner-Trust that during the financial year 2014-15 relevant to Assessment Year 2015-16, the total income of the petitioner-Trust was Rs.15,73,887/- as against there was application of income of Rs.16,13,547/- resulting into excess of expenditure over income of Rs.39,660/-.

4.3. The books of accounts of the petitioner-Trust were duly audited by Chartered Accountant-Ramesh Vasa on 07.05.2015 and Form 10B i.e. Audit Report under Section 12A(b) of the Act was also obtained on 07.05.2015.

4.4. The petitioner-Trust filed return of income for Assessment Year 2015-16 under Section 139(4A) of the Act on 26.09.2015 declaring total income at Rs.NIL after claiming exemption under Section 11 of the Act.

4.5. However, Form 10B i.e. Audit Report was not filed electronically along with the return due to the mistake on the part of the clerical staff of the Chartered Accountant who was suffering from brain tumor and was bedridden for a prolonged period and thereafter, the Chartered Account passed away on 14.10.2018.

4.6. The return of income filed by the petitioner was processed under Section 143(1) of the Act and intimation dated 15.09.2016 was issued whereby, the exemption claimed by the petitioner under Section 11 of the Act was denied in absence of the audit report in Form 10B and income was determined at Rs.15,73,890/- and demand of Rs.3,72,480/- was raised.

4.7. The petitioner thereafter filed Rectification Application on 20.12.2016 under Section 154 of the Act against the intimation under Section 143(1) of the Act which was rejected on 20th April, 2017.

4.8. The petitioner thereafter filed the audit report in Form 10B electronically on 28.03.2018.

4.9. The petitioner filed another online Rectification Application under Section 154 of the Act on 07.04.2018 which was also rejected on 23.04.2018 by the Assessing Officer on the ground that the petitioner failed to file the Form 10B electronically till the expiry of the time limit for filing of the return of income.

4.10. The petitioner filed an Appeal against the order of rectification before the CIT (Appeals) electronically on 08.08.2018.

4.11. The petitioner thereafter filed application under Section 119(2)(b) of the Act before the respondent on 04.12.2018 for condonation of delay in filing Form 10B.

4.12. The petitoner filed another on-line Rectification Application under Section 154 of the Act on 08.12.2018 which was also rejected on 29.01.2019.

4.13. The respondent issued a show-cause notice dated 25.01.2019 calling upon the petitioner to show cause as to why the application for condonation of delay in filing Form 10B should not be rejected as the reasons given by the petitioner for delay cannot be considered as “genuine hardship” on the part of the petitioner to file the Form 10B belatedly.

4.14. The petitioner by reply dated 11.02.2019, furnished the explanation for delay in filing the Form 10B.

4.15. The respondent by the impugned order dated 09.09.2019 rejected the