Quest Offices Private Limited V. Union of India, through its Secretary (Revenue), Ministry of Finance, Department of Revenue and Chief Commissioner of Income Tax, (CCIT-1) and Principal Commissioner of Income Tax-3 and Joint Commissioner of Income Tax, Circle 3(1)(1) and Deputy Commissioner of Income Tax, Circle 3(1)(1)

WP/25709/2024

AI Insights

The case involves M/s Quest Offices Private Limited, which filed a writ petition against the Union of India and various income tax authorities, seeking to set aside an order that rejected their application for condonation of delay in filing their Income Tax Return for the assessment year 2021-22. The petitioner argued that the delay was due to the COVID-19 pandemic and ongoing disputes at the NCLT, which affected their business operations and ability to file on time. The court found the reasons provided by the petitioner to be valid and in line with the CBDT circular No.9/2015, thus granting the relief sought.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 806320 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 30-09-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: TIMANNA BHAT; M TIRUMALESH
• Assessee Lawyers: APRAMEYA
• Keywords: Condonation of delay; Covid Pandemic; Financial distress; Income Tax Return; NCLT Dispute
• Section: 119(2)(b)

Judgement Text

" - 1 - NC: 2024:KHC:40656 WP No. 25709 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 25709 OF 2024 (T-RES) BETWEEN: M/S QUEST OFFICES PRIVATE LIMITED., 26-27, RAHEJA TOWERS, 10TH FLOOR, M G ROAD, BENGALURU 560 001. (REPRESENTED BY IT'S DIRECTOR OF MR. GOPAL BYRE GOWDA) REGISTERED UNDER COMPANIES ACT, 2013 …PETITIONER (BY SRI. APRAMEYA K., ADVOCATE FOR SRI. ATUL KRISHNA RAO ALUR.,ADVOCATE) AND: 1. UNION OF INDIA, THROUGH ITS SECRETARY (REVENUE), MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI - 110 001. 2. THE CHIEF COMMISSIONER OF INCOME TAX, (CCIT-1), QUEENS ROAD, BENGALURU - 560 001. 3. PRINCIPAL COMMISSIONER OF INCOME TAX-3 CR BUILDING, NO.1, QUEENS ROAD, BENGALURU 560 001. 4. JOINT COMMISSIONER OF INCOME TAX, CIRCLE 3(1)(1), ROOM NO. 241, 2ND FLOOR, BMTC BUILDING, 6TH BLOCK, KORAMANGALA, BENGALURU 560 095. Digitally signed by Vandana S Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:40656 WP No. 25709 of 2024 5. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 3(1)(1), RANGE 125, BMTC BUILDING, KORAMANGALA, BANGALORE - 560 034. …RESPONDENTS (BY SRI. TIMMANNA BHAT.,ADVOCATE FOR R1; SRI. M TIRUMALESH., ADVOCATE FOR R2 TO R5) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO SET ASIDE THE ORDER DTD 26.12.2023, PASSED BY THE R-2 BEARING NO. ITBA/COM/F/17/2023-24/1059069617(1) MARKED AS ANNEXURE-G AND DIRECT THE RESPONDENTS TO ACCEPT THE INCOME TAX RETURN OF THE PETITIONER FOR THE AY 2021-22 BY CONDONING DELAY IN FILING UNDER S. 119(2)(b) OF THE INCOME TAX ACT, 1961 AND DIRECT THE RESPONDENTS TO REFUND THE INCOME TAX OF RS. 48,84,860/- UPON ACCEPTING THE RETURN FILED BY THE PETITIONER. THIS WRIT PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner seeks the following reliefs: “a) Issue a writ of Certiorari to set aside the order dated 26.12.2023, passed by the Resp-2 bearing no. ITBA/COM/F/17/2023-24/1059069617(1) marked as Annexure-G. b) Issue a writ of Mandamus directing the Respondents to accept the Income Tax return of the Petitioner for the AY 2021-22 by condoning delay in filing under S. 119(2)(b) of the Income Tax Act, 1961. - 3 - NC: 2024:KHC:40656 WP No. 25709 of 2024 c) Issue a writ of Mandamus directing the Respondents to refund the Income Tax of Rs. 48,84,860/- upon accepting the return filed by the Petitioner. d) issue any other Writ, direction or order as it may deem fit in the facts and circumstances of the case.” 2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. 3. A perusal of the material on record will indicate that the petitioner did not file its Income Tax Return for the assessment year 2021-22 within due date which has expired on 31.10.2021. Subsequently, the petitioner filed an application dated 29.07.2022 under Section 119 (2)(b) of the Income Tax Act, 1961 seeking condonation of delay 458 days in submitting the Income Tax Return. In the said application, the petitioner specifically, contended that inability and omission on the part of the petitioner to file Income Tax Returns on or before the due date was due to 3rd wave of prevailing Covid pandemic and business of the petitioner was drastically affected coupled with the fact that the dispute involving petition was pending before NCLT, as a result of which, petitioner could not file Income Tax Return within the prescribed - 4 - NC: 2024:KHC:40656 WP No. 25709 of 2024 period. The said application was taken up before respondent No.2, who proceeded to pass the impugned order rejecting the application, aggrieved by which, the petitioner is before this Court by way of the present petition. 4. A perusal of the material on record will indicate that the petitioner had given cogent and valid reasons for non filing of Income Tax Returns on account of Covid pandemic, financial distress/hardship and dispute pending before NCLT which constitutes genuine hardship, bonafide reasons and sufficient cause as indicated in CBDT circular No.9/2015 dated 09.06.2015 and as such, the impugned order warrants interference by this Court in the present petition. 5. In the result, I pass the following: ORDER i) Petition is hereby allowed. ii) Impugned order dated 18/26.12.2020 at Annexure-G passed by respondent No.2 is hereby set aside. - 5 - NC: 2024:KHC:40656 WP No. 25709 of 2024 iii) Application filed by the petitioner under Section 119(2)(b) is hereby allowed and delay of 458 days stands condoned. iv) Respondent is directed to accept the Income Tax Returns filed by the petitioner and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE MDS List No.: 1 Sl No.: 49 "