Authority: High Court of Odisha at Cuttack

Order Date: 03.11.2026

Case Overview

  • Petitioners: Novel Sidharth English Medium Educational Trust, Paninala, Koraput.
  • Petitioner's Counsel: Senior Advocate Mr. Rudra Prasad Kar, assisted by Mr. Pranaya Kumar Mishra.
  • Opposite Parties: Central Board of Direct Taxes (CBDT), Department of Revenue & others; represented by Jr. Standing Counsel Mr. Avinash Kedia.
  • Case Numbers: W.P.(C) No. 9560 of 2025; CNR No. ODHC010169792025.
  • Coram: Hon'ble Dr. Justice Sanjeeb K Panigrahi and Hon'ble Mr. Justice Murahari Sri Raman.
  • Nature of Petition: Writ petition under Articles 226 & 227 of the Constitution challenging the order dated 6 January 2025 (Annexure‑1) that rejected the petition for condonation of delay in filing audit report in Form 10B (Rule 17B, Income Tax Rules) required for claiming exemption under Section 12A of the Income Tax Act, AY 2020‑21.
  • Delay Details: Audit report was due on 15 January 2021 but was filed on 31 May 2021, resulting in a 137‑day delay.
  • Petitioner’s Arguments: Cited genuine hardship due to the Covid‑19 pandemic; relied on Section 119(2)(b) discretion, Circular No.10/2019 (dated 22 May 2019) and Circular No.16/2024 (dated 18 Nov 2024); referenced Gujarat High Court decision Sarvodaya Charitable Trust vs. Income Tax Officer (Exemption) (2021) 18 ITR‑OL 253 (Guj) asserting procedural nature of audit‑report filing.
  • Respondent’s Arguments: CIT exercised discretion under Section 119(2)(b) and found no sufficient cause; asserted no genuine hardship demonstrated.
  • Court’s Observations: No dispute on the factual delay of 137 days; acknowledged Covid‑19 situation around 13 March 2022 as genuine hardship; noted that technicality should not defeat substantial justice; cited precedent Action Research for Health and Socio‑economic Development vs. CBDT (W.P.(C) No. 8035 of 2025, judgment 25 April 2025) for similar fact‑situations.

Final Outcome

  • The Court set aside the order dated 6 January 2025 passed by the Commissioner of Income Tax (Exemption), Hyderabad.
  • The matter is remitted to the concerned authority (Opposite Party No. 3) to consider the audit report in Form 10B filed on 31 May 2021 and to grant all consequential relief to the petitioner as if the report had been filed within the prescribed period, invoking Section 119(2)(b) of the Income Tax Act, 1961.
  • The writ petition stands disposed of, and any pending interlocutory applications, if any, are also disposed of.

Topics: Taxation, Judicial Review