Top Stories CBDT Condones Delay for AY 2023-24 Returns Claiming Deduction u/s 80P [Read Circular] The board has extended the applicability of circular no. 13/2023 to the assessment year 2023-24 subject to the conditions mentioned in the previous circular By Navasree A.M – On November 6, 2024 5:14 pm – 4 mins read The Central Board of Direct Taxes ( CBDT ) has granted condonation of delay for co-operative societies claiming deductions under Section 80P of the Income-tax Act, 1961, for the assessment year 2023-24. The circular No. 14/ 2024 dated 30th October 2024 was issued by the board. The board has extended the applicability of circular no. 13/2023 to the assessment year 2023-24 subject to the conditions mentioned in the previous circular. Critical EPF & ESI Act Provisions – Interpreted by the Supreme Court – To know more, Click here

The present circular states that “ In order to mitigate the genuine hardship to the assessees, the Board, in exercise of its powers conferred under section 119 of the Act, hereby extends the applicability of Circular No.13/2023 dated 26.07.2023 to the AY 2023-24, subject to the conditions stipulated therein.” Numerous applications were submitted to the Central Board of Direct Taxes (CBDT) by co-operative societies requesting this condonation, as they faced delays in filing income tax returns within the prescribed due date. The primary reason stated by these societies was the delay in obtaining audits under state-specific laws, which made it difficult for them to meet the statutory timelines for income tax return filing. Section 80P of the Income-tax Act provides tax relief to co-operative societies engaged in specific activities like banking, agricultural processing, and other services that benefit their members. Critical EPF & ESI Act Provisions – Interpreted by the Supreme Court – To know more, Click here

Recognizing the genuine difficulties faced by these societies, the CBDT has used its discretionary powers under Section 119 of the Income-tax Act to condone the delay in furnishing returns. By extending the relief provided in Circular No.13/2023 dated 26.07.2023, the Board relaxed the time limit to file the returns specifically under Section 139(1) of the Income Tax Act. Thus, the co-operative societies, despite the delays, can still claim deductions under Section 80P for the relevant assessment year. The important words of the circular 13/ 2023 dated 26th July, 2023 is as follows: “3. 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 AY 2018 to AY 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. 4.

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. Critical EPF & ESI Act Provisions – Interpreted by the Supreme Court – To know more, Click here   5. 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. 6. 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 – (i) the delay in furnishing the return of income within the due date under sub-section (1) of section 139 of the Act was caused due to circumstances beyond the control of the assessee with appropriate documentary evidence/s; Critical EPF & ESI Act Provisions – Interpreted by the Supreme Court – To know more, Click here (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-à-vis the due date of furnishing the return of income under sub-section (1) 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/s. 6.1.

The cases falling under para 6(iii) above, would require further necessary action as per law. 7. 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.” To Read the full text of the Circular CLICK HERE