The CBDT (Central Board of Direct Taxes) has issued Circular 13/2023 on 26th July 2023 to address the issue of delay in filing income tax returns by co-operative societies claiming deductions under Section 80P of the Income Tax Act, 1961 for assessment years from AY 2018-19 to AY 2022-23.
According to the Finance Act, 2018, co-operative societies need to file their income tax returns by the specified due date to claim deductions under Section 80P. However, some societies faced delays due to the audit of their accounts under respective State Laws.
To address this hardship, the CBDT authorizes Chief Commissioners of Income-tax (CCITs)/ Directors General of lncome·tax (DGITs) to handle and decide applications seeking condonation of delay in filing returns. The CCITs/DGITs will examine the applications based on certain criteria, including:
i) Whether the delay was caused by circumstances beyond the control of the assessee, supported by appropriate documentary evidence.
ii) The delay due to the audit of accounts by statutory auditors appointed under respective State Laws and its relation to the due date for filing returns.
iii) Any issues related to tax avoidance or tax evasion, which may be relevant to the case.
Cases involving tax avoidance or evasion will be dealt with according to the existing provisions of the Act.
The CCITs/DGITs are expected to resolve these applications within three months from the end of the month in which they receive the application or receive it from the CBDT. Moreover, applicants must be given an opportunity to be heard before any rejection under Section 119(2)(b) of the Act.
In summary, the circular provides a process for condoning the delay in filing income tax returns for co-operative societies claiming deductions under Section 80P, considering genuine hardship cases.
CBDT Income Tax Circular 13/2023 dated 26/07/2023: Guidelines on Condonation of Delay in ITR Filing by Cooperative Societies claiming deduction u/s 80P