High Court Condones Delay in filing Income Tax Return Due to Accountant's Illness.

A recent court case where a company successfully challenged the rejection of their application to file their income tax return late.

Background:

• The company failed to file its income tax return on time for the 2022-23 assessment year.
• Their accountant became ill and subsequently resigned, causing delays in finalizing accounts and filing the return.
• The company applied for condonation of delay (permission to file late) under Section 119(2)(b) of the Income Tax Act.
• The Board (tax authority) rejected the application, citing the company's "casual approach" in finding a replacement accountant and "willful negligence."

Court's Decision:

• The court disagreed with the Board's findings.
• The company's explanation about the accountant's illness and resignation was considered a reasonable cause for delay.
• The court found no evidence to support the Board's claims of negligence.
• Due to the unforeseen circumstances and genuine hardship, the court condoned the delay.

Outcome:

• The company can now file its return of income within 15 days.
• The assessing officer will process the return according to normal procedures.

Case Law-Anmol Feeds (P.) Ltd. Versus Union of India

Citation-2024 TAXONATION 174 (CALCUTTA)

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