The court ruled that a liberal approach should be taken in condonation cases, especially where unforeseen circumstances affected compliance, emphasizing justice over technicality.

Judgment :

MANEESH SHARMA, J.

1. The present writ petition has been preferred under Article 226 of the Constitution of India assailing the order dated 11^th September 2019 passed by the Commissioner of Income Tax (Exemptions), dismissing the application dated 14^th August 2019 filed by petitioner for condonation of delay in uploading/e-filing of Form 10B; seeking the following reliefs:

a) The application filed by the Petitioner-trust on dated 14.08.2019 ("Annexure-P/8") before Respondent No. 1 for condoning the delay be allowed and the impugned order u/s 119(2)(b) passed by the Respondent No. 1 on dated 11.09.2019 ("Annexure-P/9") be quashed and set aside.

b) That the Respondent No. 2 be directed to allow benefit of Section 11 & 12 of the Act to the Petitioner-trust.

2. Petitioner is a charitable trust and is an assessee under the provisions of INCOME TAX ACT , 1961 (hereinafter referred to as the 'Act of 1961'). Petitioner is engaged in providing space for social gatherings, functions, medical camps, condolence meetings and gatherings of religious and charitable activities on no profit no loss basis.

3. Petitioner filed return of income on 24^th July 2017 for AY 2017-18, claiming exemption u/s 11 & 12 of the Act, declaring Nil income. Petitioner got its accounts audited in Form 10B on 27^th June 2017 in compliance with Section 12A(1)(b) of the Act, which was filed physically but was not uploaded within the prescribed time as per Sub-Rule (2) of Rule 12 of INCOME TAX RULES , 1962.

4. The Central Processing Centre (‘CPC’) disallowed the exemption claim and made addition of Rs.38,15,188/- u/s 143(1), raising a demand of Rs. 12,47,230/-. Upon receiving this demand, trustees of petitioner-trust discovered that Form 10B was not uploaded. Petitioner requested the auditor to upload the same and accordingly, the auditor uploaded the same on 7^th May 2019.

5. Learned counsel for petitioner submits that upon gaining knowledge of the fact that the demand had been raised by respondent-department, petitioner had swiftly approached the CA Firm engaged by petitioner to know why the necessary return was not uploaded/electronically filed. Whereby, it transpired that, the assistant of the CA Firm; one Miss Neha Khandelwal, who was assigned the task, had forwarded the finalized copy of the Audit Report to the office bearers of the petitioner-trust, but she suddenly met with an accident resulting in fracture of her leg and therefore, took leave from the office and did not report the pending work of uploading the audit report in Form No. 10B of the petitioner to any other colleague. Consequently, e-filing of the said audit report in Form 10B, got delayed.

6. Thereafter, Petitioner filed an application for condonation of delay in uploading/e-filing of Form 10B u/s 119(2)(b) on 14^th August 2019 (Annexure-P/8) before Respondent No. 1.

7. The Commissioner of Income Tax (Exemptions) rejected the condonation application vide order dated 11^th September 2019 (Annexure-P/9) without considering the averments made in the application in the right perspective.

8. Counsel further contended that respondent department has rejected the application for condonation of delay in a perfunctory manner without recording any reasons for rejection or even considering the bona fide reasons mentioned in the application for condoning the delay in uploading/e-filing of Form 10B. He further contended that for the lapse on part of the professional engaged (the CA Firm) due to unavoidable circumstances and their inaction or otherwise, assessee cannot be made to suffer. Therefore, prays that the writ petition may kindly be allowed.

9. Lear