DOES THE CENTRAL BOARD OF DIRECT TAXES (CBDT) HAVE THE POWER UNDER SECTION 119(2)(B) TO CONDONE THE DELAY IN FILING RETURN OF INCOME?

The High Court held that the Board has the power to condone the delay in case of a return which
was filed late and where a claim for carry forward of losses was made. The delay was only one day
and the assessee had shown sufficient reason for the delay of one day in filing the return of income.
If the delay is not condoned, it would cause genuine hardship to the petitioner. Therefore, the
Court held that the delay of one day in filing of  the return was to be condoned.

Note - Section 119(2)(b) empowers the CBDT to authorise any income tax authority to admit an
application or claim for any exemption, deduction, refund or any other relief under the Act after the
expiry of the period specified under the Act, to avoid genuine hardship in any case or class of
cases. The claim for carry forward of loss in case of a loss return is relatable to a claim arising under
the category of any other relief available under the Act. Therefore, the CBDT has the power to
condone delay in filing of such loss return due to genuine reasons.