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The Central Board of Direct Taxes authorizes Chief Commissioners of Income-tax and Directors General of Income-tax to admit and decide applications for the condonation of delay in furnishing income tax returns. This authority applies to co-operative societies claiming deductions under section 80P of the Income-tax Act for assessment years 2018-19 to 2022-23. The applicant must require an audit of accounts under respective State Laws. The designated authorities examine whether circumstances beyond the control of the assessee caused the delay and check for tax avoidance or tax evasion issues. The authority must dispose of the application within three months from the end of the month of receipt and must provide an opportunity of being heard before passing any rejection order.
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F.No.173/2112023-IT A-I Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes
Circular No.13 /2023
New Delhi, the 26th 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 u/s 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 VI A-Part-C ("Deductions in respect of certain incomes") of the Act.
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80AC. Where in computing the total income of an assessee of any previous year relevant to the assessment year commencing on or after-
no such deduction shall be allowed to him unless he furnishes a return of his income for such assessment year on or before the due date specified under sub-section (1) of section 139.
Applications have been received in the Central Board of Direct Taxes (hereafter referred to as 'the Board') from co-operative societies claiming deduction u/s 80P of the Act for various assessment years from A Y 2018-19 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 (1) 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.
In order to mitigate genuine hardship in cases referred to in para 3, the Board, in exercise of the powers conferred under section 119 of the Act, hereby directs that the Chief Commissioners of Income-tax (CCsIT) / Directors General of Income-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.
The Board hereby further directs that the CCsIT/DGsIT, 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.
In the context of para-5 above, the CCsIT/DGsIT 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 CCsIT/DGsIT shall examine the following while deciding such applications -
6.1 The cases falling under para 6(iii) above, would require further necessary action as per law.
The CCsIT/DGsIT 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.
Hindi version to follow.
Copy to:
(Vikas Singh) Director (ITA-I)
