The petitioner, a registered charitable trust, sought condonation of delay in filing Form 9A under Section 119(2)(b) of the Income Tax Act, 1961, which was denied by the Commissioner of Income Tax (Exemption). The Court analyzed the legislative intent, jurisprudential principles, and applicable Circulars, concluding that the delay should be condoned in light of mitigating circumstances and CBDT Circulars.

A) Issue Before the Court:

• Para 3: The core issue was whether the Commissioner of Income Tax (Exemption) was justified in rejecting the condonation of delay for filing Form 9A related to A.Y. 2017-2018, based on the statutory discretion under Section 119(2)(b).

B) Factual Matrix:

• Paras 4-10: The petitioner is a registered charitable trust operating several educational institutions. It faced scrutiny due to a belated filing of Form 9A caused by changes from manual to electronic filing procedures. They cited several CBDT Circulars allowing for condonation.

C) Rival Submissions:

• Paras 12-27: The petitioner argued bona fide reasons for the delay and pointed out the CBDT Circulars authorizing condonation. The respondents opposed, claiming procedural non-compliance and lack of bona fide intentions.

D) Analysis and Conclusion:

• Paras 29-44: The Court emphasized the importance of mitigating hardships for genuine assessees under Section 119(2)(b) and cited precedents supporting a lenient view. It found the delay justifiable and the petitioner’s case bona fide.

Acts and Sections Discussed:

• Income Tax Act, 1961: Section 119(2)(b) (Discretion for Condonation of Delay), Section 11 (Exemption of Income), and Rule 17 (Filing Requirements).
• CBDT Circulars: Circular No. 7/2018, 30/2019, and others relevant to delay condonation.

Ratio Decidendi:

The Court held that the discretionary power conferred by Section 119(2)(b) must be exercised in a manner that mitigates genuine hardship and promotes substantial justice, particularly when procedural requirements are changed or updated.

Subjects: Taxation and Condonation of Delay in Filing Form 9A.

• Tax Law
• Charitable Trusts
• Condonation of Delay
• CBDT Circulars
• Income Tax Compliance
• Judicial Discretion