Facts
The Petitioner, a private limited company, sought to avail tax benefits under Section 115BAA of the Income Tax Act, 1961, for Assessment Year (AY) 2020-21.
Source reference: p. 1-2To qualify, the Petitioner was required to file Form 10-IC by the due date of the return of income.
Source reference: p. 2Although the return was filed on 03.02.2021, Form 10-IC was not submitted.
Source reference: p. 1On 20.01.2025, the Petitioner filed an application under Section 119(2)(b) of the Act seeking condonation of delay, citing that both directors (husband and wife) were infected with COVID-19.
Source reference: p. 2-3The Commissioner rejected the application on 05.12.2025, noting it was filed beyond the three-year limit prescribed by CBDT Circular No. 17/2024 and that the isolation of one director did not justify prolonged non-compliance when the return itself was filed on time.
Source reference: p. 2-3Issues
1. Whether the Commissioner was justified in rejecting the application for condonation of delay in filing Form 10-IC on the grounds of limitation and lack of reasonable cause
Source reference: p. 4 / para. 102. Whether the time-extension benefits of CBDT Circular No. 17/2024 apply to an application filed more than three years after the end of the relevant Assessment Year
Source reference: p. 5 / para. 14Law Applied
The court primarily applied Section 119(2)(b) of the Income Tax Act, 1961, which empowers the Board to admit belated applications for exemptions or reliefs to avoid genuine hardship.
Source reference: p. 2CBDT Circular No. 17/2024 (dated 18.11.2024), which stipulates that no application for condonation of delay regarding Form 10-IC shall be entertained beyond three years from the end of the assessment year for which the application is made.
Source reference: p. 3, para 7.2The principle that beneficial circulars should be interpreted liberally, provided the claimant falls within the circular's specified ambit.
Source reference: p. 6, para 20Reasoning
The Court observed that while the Petitioner cited medical reasons (COVID-19), the Commissioner's rejection was legally sound because the Petitioner had "slept over its rights" for nearly five years.
Source reference: p. 6, para 19-21The Court analyzed the timeline established by successive CBDT Circulars (No. 06/2022, 23/2023, and 17/2024) and determined that for AY 2020-21, the absolute deadline to apply for condonation was 31.03.2024.
Source reference: p. 5-6, para 15-18The Petitioner only applied in January 2025.
Source reference: p. 3The Court reasoned that although beneficial circulars deserve liberal interpretation, they cannot be stretched to override clear language regarding limitation.
Source reference: p. 6, para 20Furthermore, the fact that the Petitioner managed to file the main return of income within time contradicted the plea that COVID-19 prevented the filing of the specific Form 10-IC.
Source reference: p. 3, para 6Holding
The Court answered the issues in the affirmative, upholding the Commissioner's order.
It held that an assessee cannot seek the benefit of a condonation circular if they fail to apply within the prescribed three-year window from the end of the relevant assessment year.
Source reference: p. 6, para 18-20The Court found no error in the rejection of the application for AY 2020-21 due to the Petitioner's "hibernation" for over four years.
Source reference: p. 6, para 21The writ petition and pending applications were dismissed.
Source reference: p. 7, para 24Original Court PDF
Mentaura Technologies Pvt LtdvsPrincipal Commissioner Of Income Tax Delhi
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