High Court directed ITD to consider condonation of delay in filing ITR for four years as the COVID-19 pandemic constituted a force majeure event
In a recent judgment, Hon’ble Madhya Pradesh High Court directed Income Tax Department to consider the request of the Petitioner for condonation of delay in filing ITR for four years as Covid-19 Pandemic constituted a force majeure event bringing all activities to a grinding halt.
ABCAUS Case Law Citation:
4888 (2025) (11) abcaus.in HC
In the instant case, the Petitioner assessee had challenged the order(s) passed under section 119(2) of the Income Tax Act, 1961 (the Act) rejecting the application for condonation of delay occurred in filing the income tax returns for Assessment Years 2020-21, 2021-22, 202223, 2023-24.
The father of petitioner immediately before his demise was managing day to day affairs of the family owned business of constructions in the name of proprietorship concern. The Father of the petitioner passed away during the FY 2018-19. Therefore, income tax returns of the aforesaid business for four Assessment Years could not be filed with the Income Tax Department. Petitioner being the legal heir filed the application for condonation of delay in filing the income tax returns for Assessment Years from 2020-21 till 2023-24 under Section 119(2) of Act in 2024 but vide impugned orders the prayer of the petitioner to submit returns got rejected.
Before the Hon’ble High Court, it was submitted by the counsel for petitioner that no appeal is maintainable against such orders declining filing of income tax returns. According to him, due to unavoidable circumstances petitioner could not file income tax returns for the period referred above in respect of Proprietorship concern run by late father of petitioner.
It was submitted that the Petitioner was ready to submit income tax returns and ready to bear penalty amount, if any imposed, provided and a chance be given to him to enter into tax regime
It was prayed that petitioner may kindly be allowed to file the income tax returns for said assessment years and the Department be directed to accept the income tax returns for the said four assessment years.
On the other hand, the Income Tax Department referring to Section 119 as well as 153 of the Act, specially sub section (1B) of Section 153 to submitted that if return is filed, then 12 months’ period would be given to the respondents for assessment. However, the Department after considering the fact situation did not find the case of genuine hardship, therefore, rightly rejected the prayer of the petitioner.
The Hon’ble High Court observed that it appeared that father of the petitioner, who was taking care of filing of income tax return expired in 2019 and thereafter due to wrath of Covid-19 Pandemic, all activities came to a grinding halt. Petitioner and his construction activities were no exception. Therefore, it was a force majeure, which needs indulgence of the authorities in the present case because it appears that there was genuine hardship due to Covid-19 Pandemic. Said aspect deserves re-consideration.
The Hon’ble High Court opined that since five years have been prescribed for filing of return and attracts penal consequences/fine, therefore, petitioner can avail a chance to again come into formal economy and tax regime, so that he can file returns, which would in fact be beneficial for the department also.
The Hon’ble High Court opined that the matter required re-consideration and accordingly, set aside the impugned orders and Department was directed to reconsider the case of petitioner in peculiar facts and circumstances of the case as well as observations made by their Lordships.
It was further added that while deciding the case of the petitioner, Department shall be at liberty to impose appropriate fine/penalty for such delay carried out by the petitioner.
Download Full Judgment Click Here >>
- Ground not adjudicated by 1st appellate authority cannot be decided in 2nd appeal
- COVID-19 amounted to a force majeure event – HC directs condonation of delay in filing ITR
- SEBI revises its regulation on additional incentives to Mutual Fund distributors
- CBDT 2nd NUDGE initiative for voluntary compliance in respect of Foreign Assets
- Merely for wrong PIN code of consignor/ consignee goods can’t be seized u/s 129(3)
