M/S COMBINED TRACOM PRIVATE LIMITED V. THE UNION OF INDIA

WP/20858/2022

AI Insights

The case involves M/s Combined Tracom Private Limited, which filed a writ petition against the Union of India and other respondents, seeking to quash an order that rejected their application for condonation of delay in filing income tax returns for the assessment year 2020-21. The petitioner argued that the delay was due to the COVID-19 pandemic and a change of auditors, which were unforeseen and constituted sufficient cause for the delay. The respondents opposed the petition, asserting that the writ lacked merit. The court, after considering the circumstances and the relatively short duration of the delay, decided in favor of the petitioner, emphasizing a justice-oriented approach.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 736988 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 04-11-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: E I SANMATHI
• Assessee Lawyers: VACHESPATHI PRABHAKAR
• Keywords: Condonation of delay; Covid-19 pandemic; Income Tax Returns; Writ petition; Change of Auditors
• Section: 119(2)(b)

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4TH DAY OF NOVEMBER, 2022 BEFORE THE HON’BLE MR.JUSTICE S.R.KRISHNA KUMAR WRIT PETITION No.20858/2022 (T-IT) BETWEEN: M/S COMBINED TRACOM PRIVATE LIMITED NO.86/33, 1ST FLOOR COMPANY INCORPORATED UNDER COMPANIES ACT 1956 TIPPASANDRA MAIN ROAD SIR C.V.RAMAN NAGAR, BENGALURU-560 075 (REPRESENTED BY ITS DIRECTOR, SMT.RUPA VASUDEVAN) … PETITIONER (BY SMT.VACHESPATHI RAMA PRABHAKAR, ADVOCATE) AND: 1 . THE UNION OF INDIA REPRESENTED HEREIN BY THE FINANCE SECRETARY MINISTRY OF FINANCE DEPARTMENT REVENUE GOVERNMENT OF INDIA, NORTH BLOCK NEW DELHI-110 001 2 . THE PRINCIPAL COMMISSIONER OF INCOMET AX 25TH FLOOR, BMTC BUILDING 80 FEET ROAD, 6TH BLOCK KORAMANGALA BENGALURU 2 KARNATAKA-560 095 3 . THE INCOME TAX OFFICER WARD -2(1)(1) BMTC BUILDING, 80 FT. ROAD 6TH BLOCK, KORAMANGALA BENGALURU-560 095 … RESPONDENTS (BY SRI E.I.SANMATHI, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE IMPUGNED ORDER DTD 3.05.2022, ISSUED BY THE R2 BEARING NO.ITBA/COM/F/17/2022-23/ 1042930720(1) AT ANNEXURE-H IN SO FAR AS THE PETITIONER IS CONCERNED AND ETC. THIS PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, THE COURT MADE THE FOLLOWING: ORDER 1. In this petition, petitioner seeks quashing of the impugned order dated 03.05.2022 at Annexure-H and for other reliefs. 2. Heard Smt.Vachespathi Rama Prabhakar, learned counsel for the petitioner and Sri E.I.Sanmathi, learned counsel for the respondents. 3. In addition to reiterating various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner submits that on 14.12.2021, petitioner filed an application under Section 119(2)(b) of the Income Tax Act, 1961 3 (for short, hereinafter referred to as \"the Act\") seeking condonation of delay in filing the income tax returns on the specified due date for the assessment year 2020-21. 4. It is the grievance of the petitioner that despite the petitioner not being in a position to file returns within the prescribed period on account of covid-19 pandemic and due to bonafide reasons, unavoidable circumstances and sufficient cause, respondents have adopted hyper technical approach and proceeded to reject the request for condonation of delay sought for by the petitioner and as such, petitioner is before this Court by way of present writ petition. 5. Per contra, learned counsel for the respondents submits that there is no merit in the writ petition and the same is liable to be dismissed. 6. On perusal of the material on record, in particular, the application for condonation of delay dated 14.12.2021 filed by the petitioner, it is clear that the petitioner has stated that due to change of Auditors and due to prevailing covid-19 pandemic, it was not possible for the petitioner to file income tax returns for 4 the assessment year 2020-21 on time. Further, having regard to the specific assertion on the part of the petitioner that it was not possible for the petitioner to file the returns on or before the specified date due to bonafide reasons, unavoidable circumstances and sufficient cause coupled with the contention that the said delay was on account of change of Auditors and due to prevailing covid-19 pandemic and having regard to the fact that the delay in filing the returns is less than one year, which cannot be said as long or inordinate delay or laches on the part of the petitioner in filing the returns, by adopting a justice oriented approach, I deem it just and appropriate to set aside the impugned order and permit the petitioner to file the returns within a period of three weeks from the date of receipt of a copy of this order. 7. In the result, I pass the following: ORDER (i) Petition is hereby allowed. (ii) Impugned order dated 03.05.2022 passed by respondent No.2 vide Annexure-H is set aside. 5 (iii) Petitioner is permitted to file the returns within a period of three weeks from the date of receipt of a copy of this order. (iv) If the petitioner files the said returns within the stipulated time as aforesaid, respondents shall accept the same without taking into account the delay which stands condoned in favour of the petitioner under this order. SD/- JUDGE PKS "