HC Allows Late Filing of Revised ITR After Company Merger 🧾 *Case Summary* * *Petitioner*: A company involved in a *merger approved by NCLT* on *09.01.2020*, effective *retrospectively from 01.04.2016*. * *Issue*: Petitioner sought *condonation of delay under Section 119(2)(b) of the Income Tax Act, 1961* to *revise the ITR for AY 2019–20*. * *Timeline*: * *June 2020*: Application filed to condone delay for AYs 2017–18 to 2019–20. *Outcome*: * Delay *condoned for AYs 2017–18 & 2018–19*. * *Rejected for AY 2019–20 by Chief Commissioner of Income Tax (CCIT) via order dated 05.09.2023*. * *Petitioner’s Argument*: * Delay was due to reasons *beyond their control* (court-approved merger). * The treatment of AY 2019–20 inconsistentlywith prior years was *arbitrary and unfair* ⚖️ *Legal Grounds Raised* * Article 226 & 227: Writ jurisdiction of the High Court invoked to *challenge the rejection order* * *Section 119(2)(b) of Income Tax Act*: Enables CBDT to *condone delay in filing returns in genuine hardship cases*. 🏛️ High Court's Decision: * The High Court allowed the writ petition. * Held that: * The *merger created a bona fide reason* for the delay. * Once the Department *accepted the same justification for AYs 2017–18 and 2018–19*, it was *irrational to reject it for AY 2019–20*. * The *CCIT’s rejection was arbitrary*, lacking application of mind.