- 1 - NC: 2025:KHC:17591 WP No. 5587 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 5587 OF 2024 (T-IT) BETWEEN: SRI GURU RAGHAVENDRA SEVA SAMITHI TRUST, RAGHAVENDRA MUTT, RAVINDRANAGAR, HASSAN – 573 201. KARNATAKA TRUST REGISTRATION CERTIFICATE NO. S-275/12AA/CIT/MYS/08-09 PAN - AAHTS4619Q, REPRESENTED BY SECRETARY. …PETITIONER (BY SMT. JINITA CHATTERJI, ADV. FOR SRI. S. PARTHASARATHI, ADVOCATE) AND: 1. THE CENTRAL BOARD OF DIRECT TAXES (ITA CELL) MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, NORTH BLOCK, SECRETARIAT BUILDING, INDRAPRASTHA HO, NEW DELHI – 110 002. REP. BY ADDITIONAL COMMISSIONER 2. THE INCOME TAX OFFICER EXEMPTION WARD, REAC, MYSORE REAC, MYSORE – 570 008. KARNATAKA. …RESPONDENTS (BY SRI. M. DILIP, ADVOCATE) Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - NC: 2025:KHC:17591 WP No. 5587 of 2024 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER U/S 119(2)(b) OF THE ACT DATED 18.12.2023 BY THE FIRST RESPONDENT FOR THE ASSESSMENT YEAR 2018-19 (ANENXURE- G) AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner seeks the following reliefs: “a) Issue a Writ of Certiorari or a direction in the nature of Writ of Certiorari quashing the order u/s.119(2)(b) of the Act dt.18.12.2023 by the First Respondent for the assessment year 2018-19 (ANNEXURE-`G',); b) Issue a Writ of Certiorari or a direction in the nature of Writ of Certiorari quashing the communication dt.3.1.2024 in No.IBA/COM/F/17/2023-24/1059313208(1) by the First Respondent for the assessment year 2018-19 (ANNEXURE-`H',); c) Issue a Writ of Prohibition or a direction in the nature of Writ of Prohibition restraining the First Respondent from the recovery of the impugned demand raised by the Second Respondent vide intimation dt.26.9.2019 (ANNEXURE-`C') and communication dt.3.1.2024 in File No.IBA/COM/F/17/2023- 24/1059313208(1) issue by the Second Respondent (Annexure-`H'). - 3 - NC: 2025:KHC:17591 WP No. 5587 of 2024 d. Issue a Writ of Mandamus or a direction in the nature of Writ of Mandamus directing the First Respondent to condone the delay in filing the audit report and direct the Second Respondent to allow the exemption under sec 11 of the Act. e) Pass such other order, direction or writ as this Hon'ble Court deems fit, and f) Direct the Respondents to award the costs of this Writ Petition.” 2. A perusal of the material on record indicate that the petitioner is a Charitable and religious Trust and submitted its income tax returns for the assessment year 2018-19 on 20.09.2018. The said returns having been processed, the respondents issued an Intimation to the Petitioner under section 143(1) of the Income Tax Act hereinafter referred to as the ‘IT Act’ wherein benefit of exemption under Section 11 of the IT Act was not granted to the petitioner. Pursuant to the said denial of exemption under section 11 of the IT Act the Petitioner realized that the audit report in Form-10B applicable to the petitioner-Trust had not been submitted along with the income tax returns. Pursuant to the said realization, the petitioner submitted the said audit report in Form-10B along with an application on 05.02.2022 invoking - 4 - NC: 2025:KHC:17591 WP No. 5587 of 2024 Section 119(2)(b) of the I.T. Act seeking condonation of delay in submitting the said audit report. It was contended that the inability and omission on the part of the petitioner to submit the said audit report along with the income tax returns was due to bonafide reasons, unavoidable circumstances and sufficient cause, since the same was not filed by oversight. The said application was considered by the respondent, who declined to condone the delay and accordingly, passed the impugned order dated 18.12.2023, rejecting the application for condonation of delay, aggrieved by which the petitioner is before this Court by way of the present petition. 3. Per contra, learned counsel for the respondents submits that there is no merit in the petition and the same is liable to be dismissed. 4. A perusal of the material on record will indicate that it is an undisputed fact that the petitioner is a Public Charitable and Religious Trust carrying on charitable and religious activities. It is also not in dispute that the petitioner had submitted its income tax returns within the prescribed period i.e., on 20.09.2018 as a Trust. Under these circumstances, in the light of the specific assertion on - 5 - NC: 2025:KHC:17591 WP No. 5587 of 2024 the part of the petitioner that its inability and omission to submit the audit report in From-10B along with its income tax returns was due to bonafide reasons, unavoidable circumstances and sufficient cause, I am of the view that the petitioner had demonstrated and established genuine hardship and circumstances beyond its control, which prevented it from submitting the audit report along with the I.T. returns. Under these circumstances, the impugned order, which proceeds on a hyper technical approach deserves to be set aside and by adopting a justice oriented approach, in the light of the undisputed fact that the petitioner is Religious and Charitable Trust, it would be just, proper and expedient to set aside the impugned order and allow the application filed by the petitioner for condonation of delay and issue further directions in this regard. 5. In the result, the following order is passed : ORDER (i) Petition is hereby allowed; (ii) The impugned order at Annexure-G dated 18.12.2023, passed by respondent No.1, is hereby set aside; (iii) The application filed by the petitioner under section 119(2)(b) dated 05.02.2022 is hereby - 6 - NC: 2025:KHC:17591 WP No. 5587 of 2024 allowed and the delay on the part of the petitioner in submitting the audit report in Form- 10B is hereby condoned; (iv) Respondent No.1 is directed to accept the income tax returns as well as Audit Report in Form-10B filed by the petitioner as if it was filed within the due date and proceed further, in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE MDS List No.: 1 Sl No.: 0