Income Tax - Delay in Filing Form 10B and Its Consequences

Income Tax - Delay in Filing Form 10B and Its Consequences

In the recent case [Mirae Asset Foundation v. PCIT [2025] GCtR 1347 (Bombay)], the delay in filing Form 10B is only 24 days. The ground on which delay was not condoned by Tax Authorities is that even after the filing of Form 10B with a delay of 24 days, no application for condonation of delay was filed immediately and the same was submitted only about 9 months later. Therefore, the delay was not condoned. This was challenged by assessee.

As far as the condonation of delay is concerned, it was seen that admittedly there was only 24 days delay in filing Form 10B. It is true that the application seeking condonation of delay was filed after about 9 months. 

It was held that if this delay is not condoned, there will be genuine hardship to the Petitioner, inasmuch as, the Petitioner would be denied the exemption otherwise claimed under the provisions of Section 11 of the IT Act, 1961 and which is a substantial amount. 

In such cases, approach of the Authorities ought to be equitious, balancing and judicious and availing of exemption should not be denied merely on the bar of limitation. This is more so, when the legislature has conferred wide discretionary powers to condone the delay on the authorities concerned.