Pavai Varam Educational Trust v. CPIO (2025) 478 ITR 417 (Mad)(HC)

S.139: Return of income-Limitation-Where assessment order was passed and consequential demand raised by treating return and audit reports as belated without considering CBDT Notification dated 31-12-2020 extending time limits due to COVID-19 under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, the order was unsustainable-Return and audit reports filed on 14-02-2021 were within extended time up to 31-03-2021-Assessment order and demand set aside and Department directed to open e-portal to enable assessee to upload reports, if any. [Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, Art.226]

The assessee, for AY 2020-21, filed its return of income and audit reports on 14-02-2021 after the due dates originally prescribed under section 139, which stood extended up to 31-03-2021 by CBDT Notification dated 31-12-2020 issued under the 2020 Act due to the COVID-19 pandemic. Ignoring the said notification, the Assessing Officer disallowed expenses and raised a consequential demand by treating the filings as delayed. The High Court held that the return and audit reports were filed within the extended time and the assessment order passed without considering the statutory extension was contrary to law. Accordingly, the assessment order and demand were set aside and the Department was directed to remove the demand and open the e-portal to enable uploading of reports, if any. (SJ) (AY. 2020-21)