Requiring an assessee to pay more tax by denying deduction under Section 80-IC of the Act would be a case of ‘genuine hardship’ for the purpose of section 119(2)(b) of the Act. The power to condone the delay has been conferred to enable the authorities to do substantial justice and the authorities are expected to bear in mind that no applicant would stand to benefit by lodging delayed claims, moreso, in case where the assessee would get tax advantage/benefit by way of deductions under Section 80-IC of the Act. After noting the utter disregard to the previous orders passed by the Court on the manner in which CBDT should decide applications for condonation of delay, the High Court has also directed that a copy of this order be placed before the Chairman of CBDT to ensure compliance with the orders passed by the Court.

Furthermore, after noting that no order has been passed on an application for rectification filed by the assessee for six years, directed initiation of disciplinary action against the assessing officer with a direction to dispose of the rectification application within a fixed timeline.