COVID Restrictions, Health Issues Not Sufficient to Condone Five-Year Delay in Filing ITR by NRI Senior Citizen: Delhi HC [Read Order]

In a recent ruling, the Delhi High Court refused to condone a delay of almost five years in filing an Income Tax Return (ITR) by a senior citizen who is a Non-Resident Indian (NRI). The court said that problems like COVID-19 travel restrictions and health issues were not strong enough reasons to claim "genuine hardship" under the Income Tax Act.

Manjit Singh Dhaliwal, the assessee is a Canadian citizen and NRI. He filed a writ petition against an order from the Commissioner of Income Tax (International Taxation). This order had rejected his request under Section 119(2)(b) of the Income Tax Act, 1961, to excuse the late filing of his ITR for the assessment year (AY) 2020-21.

The assessee had applied for condonation of delay on June 6, 2025. The assessee explained that before AY 2020-21, he had no taxable income in India. In that year, he sold a property in India for about Rs. 2 crore, and the buyers deducted tax at source (TDS). He also had a little interest income. The sale was handled by someone he gave power of attorney to, and he only learned about the TDS later.

In front of the tax officials, the assessee’s counsel said that he is a senior citizen living abroad for many years, didn't know about Indian tax rules, and wasn't aware he needed to file an ITR. The counsel argued that the delay caused because of the assessee’s health problems, past surgeries, COVID travel bans, and stated that it was an honest mistake that didn't cause any loss to the government.

The Income Tax Department turned down his request. They said not knowing the law is no excuse, his health issues were from long ago, and COVID restrictions don't justify the delay because ITRs can be filed online from anywhere in the world.

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The court's two-judge bench, led by Justice V. Kameswar Rao and Justice Vinod Kumar, agreed with the tax department. They said the reasons given don't count as genuine hardship under Section 119(2)(b). The court stressed that legal deadlines must be followed strictly, and delays can only be excused in very special cases with strong proof.

The court supported the tax department's decision and refused to change it. They dismissed the case and the request to condone the delay was rejected.

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