Cooperative Societies may submit requests to Chief Commissioners of Income· tax (CCsIT) / Directors General of lncome·tax (DGsIT) for condonation of delay in filing of Income tax return : CBDT
1. CBDT authorises Chief Commissioners of Income· tax (CCsIT) / Directors General of lncome·tax (DGsIT) to condone delay in Income tax return filing by Co-operative Societies for returns of income claiming deduction U/s 80P of the Income tax Act for various assessment years from Assessment Year 2018-19 to Assessment Year 2022-23 ([Central Board of Direct Taxes Circular No.13 12023, Dated 26.07.2023])
the Income-tax Act, 1961 Section 80P provides for deduction in respect of income of co-operative societies under Chapter V1A-Part-C of the Income-tax Act, 1961.
2. In so far as section 80P of the Income-tax Act, 1961 is concerned, Finance Act, 2018 substituted section 80AC of the Act w.e.f. 01-April-2018 which provides as under -
Deduction not to be allowed unless return furnished 80AC. Where in computing the total income of an assessee of any previous year relevant to the assessment year commencing on or after-
- 1st April 2006 but before 1st April, 2018, any deduction is admissible U/s [ 80-IA or 80-IAB or 80-IB or 80-IA or 80-IC or 80-IE or 80-ID].
- The 1st day of April, 2018, any deduction is admissible under any provision of this Chapter under the heading “C. - Deductions in respect of certain incomes”,
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 U/s 139(1).
3. Applications have been received in the Central Board of Direct Taxes from co-operative societies claiming deduction U/s 80P of the Act for various assessment years from Assessment Year 2018-19 to 2022-23, regarding condonation of delay in furnishing return of income and to treat such returns as 'returns furnished within the due date U/s 139(1) of the Income tax 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 or the powers conferred U/s 119 of the Income tax Act, hereby directs that the CCsIT / DGsIT are authorised to deal with such applications of condonation of delay pending before the Central Board of Direct Taxes, upon transfer of such applications by the Central Board of Direct Taxes, & decide such applications on merits, in accordance with the law.
5. The Central Board of Direct Taxes 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 Income-tax 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 Chief Commissioners of Income· tax / Directors General of income tax while deciding such applications for condonation of delay in filling of ITR, shall satisfy themselves that the applicant’s case is a fit case for condonation under the existing provisions of the Income-tax Act. The CCsIT / DGsIT shall examine the following while deciding such applications –
- Delay in furnishing the return of income within the due date U/s 139(1) of the Income-tax Act was caused due to circumstances beyond the control of the assessee with appropriate documentary evidence/s;
- where delay in filling return of ITR 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 U/s 139(1) of the Income-tax Act; and
- 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.
NOTE; The cases falling under para 6(iii) above, would require further necessary action as per law.
7. The Chief Commissioners of Income· tax (CCsIT) / Directors General of lncome·tax (DGsIT) shall preferably dispose of the application within 3 months from the end of the month in which such application is received from the applicant or transferred by the Central Board of Direct Taxes. Opportunity of being heard is provided to applicant & No order is passed before processing it regarding rejection of the application U/s 119(2)(b) of the Income-tax Act.
