The Bombay High Court has condoned the delay in filing ITR (Income Tax Return) by a doctor on covid duty.
The bench of Justice G. S. Kulkarni and Justice Firdosh P. Pooniwalla has observed that CBDT has completely lost sight of the fact that not only was the Petitioner a doctor who was on covid duty but that the Petitioner faced various other problems due to the Covid-19 pandemic, and that was the reason why the Petitioner could not file her Return of Income within time.
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Background – Delay In Filing ITR
The petitioner/assessee is a doctor by profession and Petitioner’s Return of Income, under Section 139 (1) of the Income Tax Act, 1961 (the Act), for the Assessment Year 2020-2021, was due to be filed on 10th January, 2021 as per the extended due date. However, the Return of Income was filed on 31st March, 2021, declaring total income of Rs.6,75,837.
The Petitioner had a claim of carry forward of long term capital loss. The Petitioner had claimed that, during the year under consideration, she had transferred two ancestral lands which were jointly owned by her with other family members.
The Petitioner made an Application to the Central Board of Direct Taxes (CBDT) requesting it to condone the delay in filing the Return and allowing the claim of carry forward of long term capital loss by exercising power vested under Section 119 (2)(b) of the Act.
The Petitioner subsequently, by a letter filed an Addendum to the Application for condonation of delay, along with supporting evidence.
In the Application for condonation of delay, the Petitioner had given reasons for the delay in filing the Return of Income. The Petitioner had stated that she was the co-owner, along with other family members, of certain ancestral lands located at Mangdewadi, Tal. Haveli, District Pune. These ancestral lands were transferred during that year. On the above transaction, the Petitioner had to work out long term capital gain and file a Return. During Financial Year 2019-2020, the Petitioner had paid Advance Tax of Rs.8 lakhs.
The original due date for filing of Return of Income was 31st July, 2020 but due to the Covid-19 pandemic it was extended upto 31st December, 2020 and subsequently it was extended up to 10th January, 2021.
The Petitioner stated that due to the Covid-19 pandemic lock down being announced, the Petitioner, being a doctor, was rendering services to Covid-19 patients.
Further, due to various Covid-19 restrictions and the nature of occupation of the Petitioner, she was unable to approach her tax consultant in advance in respect of computation of long term capital gain. Somewhere around October, 2020, when the Petitioner approached her Chartered Accountant on the subject matter of filing of return and computation of long term capital gain, she was advised to get the valuation of the property done by a Registered Valuer to ascertain the cost of acquisition as on 1st April, 2001.
The Petitioner further stated that, as suggested by her Chartered Accountant, one valuer, Shri Vinay Chande, was approached for the purpose of valuation. Further, for the purpose of valuation, past title deeds, records of property and registered documents were required to be provided to the valuer Shri Vinay Chande from time to time.
These documents were provided to the valuer Shri Vinay Chande time to time during the months of November and December, 2020. However, the valuer was required to physically visit the site to provide the valuation report and was reluctant to do so due to the Covid-19 pandemic and increase of cases of Covid-19 as the valuer himself was a senior citizen, aged 75 years, having respiratory issues.
Due to requirement of physical visit to the site by the valuer for the valuation of the property to ascertain the cost of acquisition for computation of capital gain under Section 49 of the Act, the valuation could not be completed before the due date of filing of return of income.
Conclusion – Delay In Filing ITR
The court held that the Petitioner would be put to genuine hardship, if the delay in filing the Return of Income is not condoned. This is because the Petitioner has given valid reasons for not filing the Return of Income on time. The Petitioner has mentioned that her father had passed away on 30th November, 2022 due to Covid-19 and that her family members were affected by Covid-19 in November, 2020. The Petitioner, who is a doctor, was involved in Covid-19 duty at that time.
The court condoned the delay of 80 days in filing of the Return of Income for Assessment Year 2020-2021.
Case Details
Case Title: Smita Dilip Ghule Versus CBDT
Case No.: Writ Petition (St.)No.2348 Of 2024
Date: 08/10/2024
Counsel For Petitioner: Ajay Singh
Counsel For Respondent: Suresh Kumar
