Charitable Institution Delayed Filing Form 10B Due to COVID-19 Disruption: Orissa HC Condones 76-Day Delay [Read Order]
The High Court condoned a 76-day delay in filing Form 10B by a charitable institution, citing COVID-19 disruptions as a genuine hardship, setting aside the rejection order and directing the Commissioner of Income Tax to process the audit report
Charitable Institution – Delayed Filing Form 10B – Form 10B – taxscan
Charitable Institution – Delayed Filing Form 10B – Form 10B – taxscan
The Orissa High Court has condoned a 76-day delay in filing the Audit Report in Form 10B for the Assessment Year 2020-21 by Action Research for Health and Socio-economic Development, a charitable institution, due to disruptions caused by the COVID-19 pandemic. The court set aside the rejection order dated 17.02.2025 issued by the Commissioner of Income Tax (Exemption), Hyderabad, and directed the authority to consider the audit report on merits.
The petitioner, Action Research for Health and Socio-economic Development, a charitable society registered under Section 12A of the Income Tax Act, 1961, filed a writ petition under Articles 226 and 227 of the Constitution of India.
The petitioner challenged the rejection order dated 17.02.2025 and the intimation order dated 30.11.2021 issued by the Centralized Processing Centre which raised a tax demand of Rs. 22,01,930.
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The Audit Report in Form 10B, required under Rule 17B of the Income Tax Rules, 1962, for claiming exemption under Section 12A, was due by 15.01.2021 as per a Press Release dated 30.12.2020. The petitioner filed the report on 31.03.2021, with a delay of 76 days, attributing the delay to restricted movement and limited staff availability during the COVID-19 lockdown.
The petitioner’s application for condonation of delay under Section 119(2)(b) of the Income Tax Act was rejected by the Commissioner of Income Tax (Exemption) on 17.02.2025, prompting the writ petition.
The petitioner’s counsel argued that the delay was caused by genuine hardship due to the pandemic and cited the Supreme Court’s orders extending limitation periods during COVID-19. The counsel contended that the Commissioner relied on an outdated Circular No. 9/2015, which was superseded by Circular No. 16/2024 dated 18.11.2024, and failed to adopt a pragmatic approach as mandated by judicial precedents.
A division bench comprising Chief Justice Harish Tandon and Justice Murahari Sri Raman observed that the COVID-19 pandemic constituted a force majeure event, as recognized by government circulars and Supreme Court orders.
Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here
The court observed that the petitioner faced genuine hardship due to restricted movement and limited office functionality during the lockdown. The bench criticized the Commissioner’s reliance on the superseded Circular No. 9/2015 and emphasized a liberal interpretation of “genuine hardship” as per judicial precedents.
The court held that the Commissioner’s rejection was arbitrary and failed to appreciate the factual context of the pandemic. The court set aside the order and the 76-day delay was condoned, subject to the Commissioner examining the merits of the Form 10B audit report.
The court directed the Commissioner to modify the intimation order dated 30.11.2021, which raised the tax demand, after evaluating the audit report under Section 12A read with Rule 17B. The writ petition was disposed of without costs
To Read the full text of the Order CLICK HERE
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