Delay in Filing Form 10B and ITR Due to COVID: Madhya Pradesh HC Allows Condonation Citing Supreme Court’s Limitation Extension [Read Order]
Referring to the Supreme Court’s suo motu orders extending limitation from 15.03.2020 to 28.02.2022, the Court held the delay was covered under the extended period and quashed the Commissioner’s rejection order dated 22.07.2022
![Delay in Filing Form 10B and ITR Due to COVID: Madhya Pradesh HC Allows Condonation Citing Supreme Court’s Limitation Extension [Read Order] Delay in Filing Form 10B and ITR Due to COVID: Madhya Pradesh HC Allows Condonation Citing Supreme Court’s Limitation Extension [Read Order]](https://images.taxscan.in/h-upload/2025/07/12/2063181-form-10b-delay.webp)
The High Court of Madhya Pradesh allowed condonation of delay in filing Form 10, Form 10B, and the income tax return by a charitable society, noting that the delay occurred during the COVID-19 pandemic and fell within the limitation period extended by the Supreme Court.
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St. Tomas Education And Welfare Society,petitioner-assessee, is a registered charitable society run by members of a minority community. It operated three schools affiliated to M.P. Board and CBSE. The Society had a valid PAN and was registered under Section 12A of theIncome Tax Act. It regularly filed income tax returns along with audited financials, Form 10, and Form 10B, as its annual receipts exceeded ₹1 crore.
For A.Y. 2020-21, the due dates for filing Form B and ITR were 15.01.2021 and 15.02.2021. The petitioner filed Form 10A and 10B belatedly on 09.03.2021, declaring total income of ₹13.74 crore and claiming exemption under Section 11, resulting in nil taxable income.
The Central Processing Centre treated the entire receipts as taxable and disallowed the deductions, issuing an intimation under Section 143(1)(a). The petitioner stated that the delay occurred due to the Covid-19 lockdown, which caused the school to remain closed and delayed audit work.
Relying on Section 119(2) and Central Board of Direct Taxes (CBDT) Circular dated 03.01.2020, the petitioner filed applications for condonation of delay in filing Form 10B (on 08.02.2021) and ITR (on 11.07.2022). However, the Commissioner rejected the application through an order dated 22.07.2022, prompting the petitioner to approach the High Court.
Justice Vivek Rusia and Justice Binod Kumar Dwivedi heard both parties and reviewed the records.It noted that the due date for filing the income tax return was 15.02.2021, but the petitioner filed it on 09.03.2021. The delay occurred during the period affected by the Covid-19 pandemic.
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The Supreme Court had extended the limitation period for all legal filings starting from 15.03.2020, and further extended it multiple times due to successive waves of the pandemic. Finally, on 10.01.2022, the Court ruled that if the limitation expired between 15.03.2020 and 28.02.2022, a fresh 90-day period would apply from 01.03.2022.
Since the petitioner’s delay in filing Form 10, Form 10B, and the ITR fell within this protected period, the Court held that the delay was eligible for condonation. It quashed the rejection order dated 22.07.2022 and allowed the application under Section 119(2)(b) of the Income Tax Act. The writ petition was disposed of.
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