Delay in Filing ITR Condoned for 84-Year-Old NRI Due to Technical Issues Preventing E-Verification

Case Details: Santoshkumari Darshanlal Chopra vs. Commissioner of Income-tax (IT and TP) - [2024] 168 taxmann.com 277 (Gujarat)

Judiciary and Counsel Details

• Bhargav D. Karia & Mrs. Mauna M. Bhatt, JJ.
• Tushar Hemani, Sr. Adv. & Ms Vaibhavi K. Parikh, Adv. for the Petitioner. 
• Dev Pate & Varun K. Patel, Advs. for the Respondent.

Facts of the Case

The assessee, an individual taxpayer, filed her tax return for the assessment year 2022-23, declaring an income of Rs. 8,80,940 and claiming a Section 54 deduction of Rs. 75,11,280 after selling a residential property. She reinvested Rs. 80,00,000 in a new property, qualifying her for the deduction and a refund of Rs. 28,73,800.

Due to technical issues, the assessee couldn’t e-verify her return within 30 days. Being an 84-year-old non-resident living in New Zealand, she later sent a signed ITR-V to CPC Bengaluru but discovered her return was invalidated due to the missed e-verification. On June 26, 2023, the assessee applied under Section 119(2)(b) to condone the delay, requesting that her return be treated as valid. However, the application filed by the assessee seeking condonation of delay for e-verification of the return of income had been rejected.

High Court Held

On writ, the Gujarat High Court held that the assessee explained the reason for the belated filing of the return in the application under section 119(2)(b). The status of the assessee as a non-resident Individual is not in dispute. Further, there is no denying that the assessee was unavailable in India from 17.06.2020 to 09.08.2022 since the necessary documents were part of the record. The due date for filing the return of income had expired on account of the assessee’s non-availability.

Therefore, she filed a belated income return under section 139(4). It was a case of genuine hardship faced by the assessee, and there being sufficient cause for condonation of delay. The order passed by the AO deserved to be quashed and set aside.