CBDT Circular 14/2024: Condonation of Delay for Filing Returns Claiming Deduction under Section 80P for AY 2023-24

Circular 14/2024 addressing the condonation of delays in filing income tax returns by cooperative societies claiming deductions under Section 80P of the Income Tax Act for the Financial Year 2022-23.

The Central Board of Direct Taxes (CBDT) has issued Circular 14/2024, addressing the condonation of delays in filing income tax returns for cooperative societies claiming deductions under Section 80P of the Income Tax Act for the Assessment Year (AY) 2023-24. The circular responds to requests from these societies, which faced delays in filing returns due to the extended time required to complete audits under respective state laws. Under this new directive, the CBDT aims to reduce taxpayer hardships by extending the benefits of Circular 13/2023 (dated July 26, 2023) to AY 2023-24, with specific conditions therein.

Key Conditions from Circular 13/2023:

1. Acceptance of Delay Condonation Applications:

The CBDT directs the Chief Commissioners of Income Tax (CCsIT) and Directors Generals of Income Tax (DGsIT) to admit both new and pending applications from cooperative societies for condonation of delay in filing returns that claim deductions under Section 80P. Applications must be reviewed on merit, especially if the delay is due to the audit requirements under state laws.

2. Detailed Examination of Delays:

The CCsIT and DGsIT must assess each application for the condonation of delay to determine if it is valid under the law. Specific factors to consider include:

  • Uncontrollable Circumstances: Verification of the delay’s cause, establishing that it was due to circumstances beyond the taxpayer’s control. Adequate documentation must support this claim.
  • Audit Delay Verification: In cases where filing delays occurred because of pending audits, the date of the audit’s completion must be compared with the original due date for filing under Section 139(1) of the Act.
  • Tax Compliance and Avoidance Check: Any indications of tax avoidance or evasion relevant to the assessment year, or linked to other years, should be thoroughly reviewed.

3. Follow-up on Compliance Issues:

If the review reveals instances of tax avoidance or evasion, further actions should be taken in accordance with legal requirements.

4. Timely Disposal of Applications:

To provide prompt resolutions, the CBDT instructs the CCsIT/DGsIT to ideally complete the review and processing of each application within 3 months from the end of the month in which the application is received or transferred by the Board. Additionally, any rejection under Section 119(2)(b) should only occur after the applicant has been given a fair chance to present their case.

This circular represents the CBDT’s commitment to minimizing taxpayer difficulties by recognizing audit-related delays as a reasonable cause for missing filing deadlines. It underscores a fair and timely review process, reinforcing taxpayer rights to seek condonation in genuine cases.

To Access the CBDT Circular No. 14/2024 Dated 30/10/2024 Click Here

Also Read: CBDT Notification 5/2024 Specifying Forms for Rollback of ADA & Claiming Deductions for Qualified Agricultural Extension Projects

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