The Bombay High Court has held that the assessee ought not be put at disadvantage owing to CA’s delayed advice on complex tax matters.
The bench of Justice B. P. Colabawalla and Justice Amit S. Jamsandekar has observed that the assessee ought not to be put to a considerable disadvantage as a result of belated advice given to it by the Chartered Accountant, especially when the issue that was being grappled with is fairly complex and for which there were no well settled judicial precedents at the relevant time.
The petitioner/assessee, Balaji Landmarks LLP has filed the Application for condonation of delay in filing its return of income for the Assessment Year 2018-19. The Petitioner is also seeking appropriate directions/orders to get the delay of 5 months in the filing of the said return of income for the A.Y.2018-19 condoned.
The assessee contended that the delay occurred because the Petitioner’s Chartered Accountant was not acquainted with the legal and accounting treatment to be given apropos the compensation received in the form of Transferable Development Rights (TDR) in lieu of compulsory acquisition of certain immoveable property and, accordingly, the Petitioner sought appropriate legal advice. The time taken for obtaining such views caused the delay in filing of the return.
The assessee stated that various pieces of advice were obtained by it from May 2018 to March 2019, thereby establishing the substance, validity and bona fides of the claim of the Petitioner and its Chartered Accountant.
The petitioner contended that if the delay is not condoned, then the Petitioner will suffer genuine hardship. It is stated that in the year, the Petitioner had suffered a loss, and as per Section 80 of the Act, in order to carry forward the loss to the subsequent years in accordance with Section 72 of the Act, it is mandatory to file such a loss return of income in accordance with Section 139(3) of the Act, which in turn refers to the due date provided for in Section 139(1) of the Income Tax Act.
The court held that the delay in filing the return of income for the A.Y.2018-19 is condoned. The ROI filed on 30th March 2019 shall be treated to be a return filed in accordance with Section 153(1B) and the time frame to complete the assessment shall apply.
Case Details
Case Title: Balaji Landmarks LLP Versus CBDT
Case No.: Writ Petition No. 16638 Of 2024
Date: October 14, 2025
Counsel For Petitioner: Percy Pardiwala, Senior Advocate
Counsel For Respondent: Vikas Khanchandani, Advocate