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 AY 2018-19 to AY 2022-23
Circular No. 13/2023 was issued by the Central Board of Direct Taxes on 26 July 2023. Its subject is 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 AY 2018-19 to AY 2022-23.
This is a condonation. It lets an authority admit something filed late; it does not make the late filing timely, and it usually carries conditions and an outer limit of its own.
Opens up condonation of delay for co-operative societies whose returns claiming deduction under section 80P for assessment years 2018-19 to 2022-23 were filed late. Section 80AC, as substituted by the Finance Act, 2018 with effect from 1 April 2018, refuses any deduction under the heading 'C.—Deductions in respect of certain incomes' of Chapter VI-A unless the return is furnished by the due date under section 139(1), and section 80P sits under that heading. Societies applied to the Board saying the delay came from waiting for their accounts to be audited under their own State laws. The Board, under section 119, authorises Chief Commissioners and Directors General of Income-tax to decide such applications on merits — those already pending before the Board on transfer, and from then on all pending and new applications for those years, whether filed with the Board or in the field, where the applicant is required to get his accounts audited under a State law. They are to satisfy themselves that the delay was caused by circumstances beyond the assessee's control on documentary evidence, to compare the date the audit was completed with the due date under section 139(1), and to look at anything pointing to tax avoidance or evasion in that year or connecting it with another year, which requires further action as the law provides. Applications are to be disposed of preferably within three months from the end of the month of receipt or transfer, and no application may be rejected without giving the applicant a hearing.
Applications were received from co-operative societies for assessment years 2018-19 to 2022-23 saying the delay in filing was caused by delay in getting accounts audited under their respective State laws, and the Board acted to mitigate genuine hardship.
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 New Delhi the2b July, 2023 Sub:- Condonation of delay under clause (b) of sub-section (2) of section 119 of the Incometax 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 furn ishing 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·5 above, the CCslT/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 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. " .' 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 '1.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)
Where a co-operative society's section 80P deduction has been denied in processing or assessment under section 80AC because the return was filed after the due date.
Source: the Income Tax Department’s own published text — its page for this instrument.
