F.No.173/2112023-IT A-I
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
Circular No.13 12023
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New Delhi the2b July, 2023
Sub:- Condonation of delay under clause (b) of sub-section (2) of section 119 of the Income-
tax Act, 1961 for returns of income claiming deduction uls 80P of the Act for various
assessment years from A Y 2018-19 to AY 2022-23- Reg.
Section 80P of the Income-tax Act, 1961 (hereafter referred to as 'Act') provides for
deduction in respect of income of co-operative societies under Chapter V1A-Part-C ("Deductions
in respect of certain incomes") of the Act.
2.
In so far as section 80P of the Act is concerned, Finance Act, 2018 substituted section
80AC of the Act w.e.r. 01 .04.2018 which provides as under -
Dedllc/iollllo//O be allowetllllliess relllmfllmislleti.
80AC. Where in compllting the total income of an assessee of any previous year relevant to the
assessment year commencing on or afier-
(i)
the 1st tlay of April, 2006 but before the 1st day of April, 2018, any tleduction is
admissible under section 80-IA or section 80-IAB or seclion 80-IB or section 80-
fC or section 80-/D or section 80-IE;
(ii)
(he ls( day of April, 2018, any dedllction is admissible lInder any provision of tllis
Chapter under the heading "C.- Deductions in respect of certain incomes",
no such deduction shall be allowed to him lin less he furnishes a retllrn of his income for such
assessment year on or before the dlle date specified under sub-section (I) of seclion 139.
3.
Applications have been received in the Central Board of Direct Taxes (hereafter referred to
as 'the Board') from co-operative societies claiming deduction uls 80P of the Act for various
assessment years from A Y 20 18-19 to A Y 2022-23, regarding condonation of delay in furnishing
return of income and to treat such returns as 'returns furnished within the due date under sub-
.'
..
section (I) of section 139 of the Act stating that delay in furnishing return of income was caused
due to delay in getting the accounts audited under respective State Laws.
4.
In order to mitigate genuine hardship in cases referred to in para 3, the Board, in exercise
orthe powers conferred under section 119 of the Act, hereby directs that the Chief Commissioners
of Income· tax (CCs/T) / Directors General of lncome·tax (DGsIT) are authorised to deal with
such applications of condonation of delay pending before the Board, upon transfer of such
applications by the Board, and decide such applications on merits, in accordance with the law.
5.
The Board hereby further directs that the CCsITfDGsIT, henceforth, shall admit all
pending as well as new applications for condonation of delay in furnishing returns of income
claiming deduction u/s 80P of the Act, filed either in the Board or in field formation for the
assessment years 2018·19 to 2022·23 and decide such applications on merits in accordance with
the law where such person is required to get his accounts audited under respective State Laws.
6.
In the context of para·S above, the CCslTfDGsIT while deciding such applications for
condonation of delay in furnishing return of income, shall satisfY themselves that the applicant's
case is a fit case for condonation under the existing provisions of the Act. The CCslT/DGsIT shall
examine the following while deciding such applications -
(i)
the delay in furnishing the return of income within the due date under sub·section (I)
of section 139 of the Act was caused due to circumstances beyond the control of the
assessee with appropriate documentary evidence/s;
(ii)
where delay in furnishing return of income was caused due to delay in getting the
accounts audited by statutory auditors appointed under the respective State Law under
which such person is required to get his accounts audited, the date of completion of
audit vis·a·vis the due date of furnishing the return of income under sub·section (I) of
section 139 of the Act; and
(iii)
any other issue indicating towards tax avoidance or tax evasion specific to the case,
which comes into the light in the course of verification and having bearing eitHer in the
relevant assessment year or establishing connection of relevant assessment year with
other assessment year/so
6.1
The cases falling under para 6(iii) above, would require further necessary action as per
law.
"
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7.
The CCslT/DGslT shall preferably dispose the application within three months from the
end of the month in which such application is received from the applicant or transferred by the
Board. No order rejecting the application under section 119(2)(b) of the Act shall be passed
without providing the applicant an opportunity of being heard.
8.
Hindi version to follow.
Copy to:
I.
PS to FM/OSD to FMIPS to MoS (R)/OSD to MoS(R)
2.
PPS to Revenue Secretary
3.
Chairman, CBDT & All Members, CBDT
'l.v--~~~
(Vikas Singh)
Director (ITA-I)
4.
All Pro Chief Commissioners of Income-tax I Pr. Director Generals of Income-tax.
5.
Pr. Chief Controller of Accounts, New Delhi
6.
All Joint Secretaries/CsIT, CBDT
7.
Web Manager, 0 /0 Pr. DGIT(Systems) with request to upload on the departmental website.
8.
Commissioner of Income-tax (Media & TP) and Official spokesperson ofCBDT, New Delhi.
9.
Secretary General, IRS Association! Secretary General, ITGOAlAII-lndia Income-tax SC &
ST Employees' Welfare Associationllncome-tax Employees Federation (ITEF)
10. JCIT, Data-Base Cell for uploading on www.irsofficersonline.org
\j \~~~
Director (ITA-I)
