CBDT issues Order under section 119 vide Circulars Nos. 15, 16, and 17 all dated 19.07.2022 to extend the powers of Pr. CCIT/CCIT to grant condonation of delay in filing of Form No. 10BB, Form No. 10B, Form No. 9A and Form 10 respectively where the delay is beyond 365 days and upto 3 years for AY 2018-19 and subsequent years.
The extensions of the period of delay for granting condonation so far provided in these 3 (three) circulars are discussed below.
Condonation of delay in filing of Form 10BB
Earlier, CBDT vide Circular No. 19/2020 dated 03.11.2020 has empowered the Commissioners of Income-tax to condone the delay in filing of Form 10BB for AY 2018-19 and subsequent assessment years where there is delay of upto 365 days. An application for condonation of delay of more than 365 days in filing of Form 10BB needs to be filed with the CBDT only.
However, with this Order issued by Circular No. 15/2022, now the Pr. Chief Commissioners of income tax or Chief Commissioners of income tax shall have the power to decide on the application for condonation of delay in filing of Form No. 10BB for a period beyond 365 days but up to 3 years. Any delay beyond 3 years will be condoned by the CBDT only.
Further, in order to get the condonation, the applicant must prove that there exists reasonable cause which prevented them from filing of such forms within the stipulated time. The application for condonation of delay in filing of Form 10BB shall be preferably disposed within a period of three months.
The audit report in Form 10BB is required to be furnished by any educational or institution, university, hospital, or trust that claims exemption under section 10(23C) of the Income-tax Act, 1961 (hereafter Act') where the total income exceeds the basic exemption amount.
The requirement of filing of audit report in Form No. 10BB for claiming exemption under section 10(23C) was introduced by the Taxation Laws (Amendment) Act 2006.
Condonation of delay in filing of Form 10B
Earlier, CBDT vide Circular No. 2/2020 dated 03.01.2020 authorized the Commissioners of Income-tax to admit applications for condonation of delay in filing of Form No. 10B for AY 2018-19 or for any subsequent assessment years where there is a delay in filing of Form no. 10B upto 365 days.
However, with this Order issued by Circular No. 16/2022, now the Pr. Chief Commissioners of income tax or Chief Commissioners of income tax shall have the power to decide on the application for condonation of delay in filing of Form No. 10B for a period beyond 365 days but up to 3 years. Any delay beyond 3 years will be condoned by the CBDT only.
Further, in order to obtain the condonation, the applicant must prove that there exists reasonable cause which prevented them from filing of such forms within the stipulated time. The application for condonation of delay in filing of Form 10B shall be preferably disposed within a period of three months.
Form 10B is an audit report which is required to be filed by a registered charitable or religious trust/institution in order to claim exemption from income under section 11 when the total income of such trust or institution is computed without giving effect to Sections 11 and 12 and exceeds the maximum amount not chargeable to income tax in any given financial year, Form 10B is compulsorily required to be filed online from AY 2020-21.
Under the provisions of section 12A of the Act where the total income of a trust or institution as computed under the Act without giving effect to the provisions of section 11 and section 12 exceeds the maximum amount which is not chargeable to income-tax in any previous year, the accounts of the trust or institution for that year have to be audited by an accountant as defined in the Explanation below sub-section (2) of section 288 and the person in receipt of the income is required to furnish along with the return of income for the relevant assessment year the report of such audit in the prescribed form duly signed and verified by such accountant and selling forth such particulars as may be prescribed.
As per Rule 17B of Rules, the audit report of the accounts of such a trust or institution is to be furnished in Form No. 10B. As per Rule 12(2) of the Rules, such audit report is to be furnished electronically. The failure to furnish such a report in the prescribed form along with the return of income results in disentitlement of the trust from claiming exemption under sections 11 and 12 of the Act.
Condonation of delay in filing of Form 9A and Form 10
Earlier, CBDT vide Circular No. 3/2020 dated 03.01.2020 authorized the Commissioners of Income-tax to admit applications for condonation of delay in filing of Form No. 9A and Form No. 10 for AY 2018-19 or for any subsequent assessment years where there is a delay in filing of Form No. 9A and Form No. 10 upto a period of 365 days.
However, with this Order issued by Circular No. 16/2022, now the Pr. Chief Commissioners of income tax or Chief Commissioners of income tax shall have the power to decide on the application for condonation of delay in filing of Form No. 9A and Form No. 10 for a period beyond 365 days but up to 3 years. Any delay beyond 3 years will be condoned by the CBDT only.
Further, in order to obtain the condonation, the applicant must prove that there exists reasonable cause which prevented them from filing of such forms within the stipulated time. The application for condonation of delay in filing of Form No. 9A and Form No. 10 shall be preferably disposed within a period of three months.
In respect of Form No. 10, the PCCIT/CCIT shall also satisfy that the accumulated income has been invested or deposited in any one or more modes specified in section 11(5) of the Act.
Form 9A is required to be filed if a registered charitable or religious trust/institution fails to apply 85% of its income and accumulates the deficit to be applied in the next financial year or in the year of receipt of income.
Form No. 10 is required to be filed by a registered charitable or religious trust/institution for calaiming exemption of income for accumulation of 85% of income up to a period of 5 years.
While 15% of the income can be accumulated indefinitely by the trust or institution, 85% of income can only be accumulated for a period not exceeding 5 years subject to the conditions, inter alia, that such person submits the prescribed Form No. 10 electronically to the Assessing Officer within the due date specified under section 139(1) of the Act.
In both cases, once the forms are filed, the amount will be deemed to have been applied in the FY for which the forms were filed.
Under the provisions of section 11 of the Act the primary condition for grant of exemption to trust or institution in respect of income derived from property held under such trust is that the income derived from property held under trust should be applied for charitable purposes in India. Where such income cannot be applied during the previous year, it has to be accumulated and applied for such purposes in accordance with various conditions provided in the section.
As per Section 11 and section 13 of the Act read with Rule 17 of the Income-tax Rules, 1962, while 15% of the income can be accumulated indefinitely by the trust .or institution, 85 % of income can .only. be accumulated for a period not exceeding 5 years subject to the conditions, inter alia, that such person submits the prescribed Form No. 10 electronically to the Assessing Officer within the due date specified under section 139(1) of the Act.
Further, where the income from the property held under trust and applied to charitable or religious purposes falls short of 85% of the income derived during the previous year for the reason that the income has not been received during that year or any other reason, then on exercise of the option by submitting in Form No.9A electronically by the trust/institution on or before the due date of furnishing the return of income, such income shall be deemed to have been applied for charitable or religious purpose.
These three circulars have been issued in continuation of the earlier circulars and not in supersession thereof. Therefore, as per these circulars,-
1. The applications for condonation of delay in filing of Form 10BB or Form No. 10B or Form No. 9A and Form No. 10 for assessment years prior to AY 2018-19 shall be decided by the CIT. Before granting the condonation of delay in filing Form 10BB or Form No. 10B or Form No. 9A and Form No. 10, the CIT shall satisfy himself that there was a reasonable cause for the delay in filing Form 10BB or Form No. 10B or Form No. 9A and Form No. 10.
2. The applications for condonation of delay in filing of Form 10BB or Form No. 10B or Form No. 9A and Form No. 10 for the assessment year 2018-19 or any subsequent assessment years shall be decided by the CIT on merits if the period of delay in filing of Form 10BB or Form No. 10B or Form No. 9A and Form No. 10 does not exceed 365 days.
3. Where the period of delay of filing of Form 10BB or Form No. 10B or Form No. 9A and Form No. 10 exceeds 365 days but within a period of 3 years for AY 2018-19 or subsequent assessment years, the applications for condonation of delay in such cases shall be decided by the Pr. CCIT/CCIT.
4. The Board has directed that all the applications for condonation of delay in filing of Form 10BB or Form No. 10B or Form No. 9A and Form No. 10 shall preferably be disposed-off within a period of three months from the date of receipt of the application.
Hence, any application for condonation of delay in filing of Form 10BB or Form No. 10B or Form No. 9A and Form No. 10 beyond the period of three years shall be required to be made before the Board.
Read the full text of CBDT Circular No. 15/2022 dated 19.07.2022 on condonation of delay in filing of Form No. 10BB
Circular No. 15/2022
F.No.197/89/2022-ITA-I
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi the 19th July, 2022
Sub: Condonation of delay under Section 119(2)(b) of the Income-tax Act, 1961 in filing of Form No. 10BB for Assessment Year 2018-19 and subsequent years - Reg.
In exercise of the powers conferred under section 119(2) of the Income-tax Act, 1961 (hereinafter referred to as 'Act'), the Central Board of Direct Taxes (CBDT) by Circular No. 19/2020 dated 3rd November, 2020 issued by F.No. 197/135/2020-ITA-I has directed that: -
(i) In all the cases of applications for condonation of delay in filing of Form No. 10BB for years prior to A Y. 2018- 19, the Commissioners of Income-tax are authorized to admit applications for condonation of delay u/s 119(2)(b) of the Act. The Commissioner while entertaining such applications regarding filing Form No. 10BB shall satisfy themselves that the applicant was prevented by reasonable cause from filing such Form within the stipulated time.
(ii) where there is delay of upto 365 days in filing Form No. 10BB for Assessment Year 2018-19 or for any subsequent Assessment Years, the Commissioners of Income-tax are authorized to admit such applications of condonation of delay under section 119(2) of the Act and decide on merits.
2. Further to the powers delegated to the field authorities as discussed above, the CBDT hereby directs that where there is delay of beyond 365 days upto three years in filing Form No. 10BB for Assessment Year 2018-19 or for any subsequent Assessment Years, the Pr. Chief Commissioners of Income-tax/Chief Commissioners of Income-tax are authorized to admit such applications of condonation of delay under section 119(2) of the Act and decide on merits.
3. The Pr. Chief Commissioner/Chief Commissioner or Commissioners of Income-tax, as the case may be, while entertaining such applications for condonation of delay in filing Form No. 10BB, shall satisfy themselves that the applicant was prevented by reasonable cause from filing such Form within the stipulated time.
4. Further, the Pr. Chief Commissioner/Chief Commissioner of Income-tax, as the case may be, shall preferably dispose the application within three months of receipt of the application.
[Sourabh Jain]
Under Secretary (ITA-I)
Download CBDT Circular No. 15/2022 dated 19.07.2022 on condonation of delay in filing of Form No. 10BB in PDF format
Read the full text of CBDT Circular No. 16/2022 dated 19.07.2022 on condonation of delay in filing of Form No. 10B
Circular No. 16/2022
F. No.197/89/2022-ITA-I
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi the 19th July, 2022
Sub: Condonation of delay under Section 119(2)(b) of the Income-tax Act, 1961 in filing of Form No. 10B for Assessment Year 2018-19 and subsequent years - Reg.
In exercise of the powers conferred under section 119(2) of the Income-tax Act, 1961 (hereinafter referred to as 'Act'), the Central Board of Direct Taxes (CBDT) by Circular No.2/2020 [F.No. 197/55/2018-ITA-I] dated 03.01.2020 authorized the Commissioners of Income-tax to admit applications of condonation of delay in filing Form No. 10B for AY 2018-19 or for any subsequent Assessment Years where there is delay of upto 365 days and decide on merits.
2. Further to the powers delegated to Commissioners of Income-tax as discussed above, the CBDT hereby directs that where there is delay of beyond 365 days upto three years in filing Form No. 10B for Assessment Year 2018-19 or for any subsequent Assessment Years, the Pr. Chief Commissioners of Income-tax/Chief Commissioners of Income-tax are authorized to admit such applications of condonation of delay under section 119(2) of the Act and decide on merits.
3. The Pr. Chief Commissioner/Chief Commissioner or Commissioners of Income-tax, as the case may be, while entertaining such applications for condonation of delay in filing Form No. 10B, shall satisfy themselves that the applicant was prevented by reasonable cause from filing such Form within the stipulated time.
4. Further, the Pr. Chief Commissioner/Chief Commissioner of Income-tax, as the case may be, shall preferably dispose the application within three months of receipt of the application.
[Sourabh Jain]
Under Secretary (ITA-I)
Download CBDT Circular No. 16/2022 dated 19.07.2022 on condonation of delay in filing of Form No. 10B in PDF format
Read the full text of CBDT Circular No. 17/2022 dated 19.07.2022 on condonation of delay in filing of Form No. 9A and Form No. 10
Circular No. 17 /2022
F.No.197/89/2022-ITA-I
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi the 19th July, 2022
Sub: Condonation of delay under Section 119(2)(b) of the Income-tax Act, 1961 in filing of Form No. 9A and Form No. 10 for Assessment Year 2018-19 and subsequent years- Reg.
In exercise of the powers conferred under section 11 9(2) of the Income-tax Act, 1961 (hereinafter referred to as 'Act'), the Central Board of Direct Taxes (CBDT) by Circular No. 3/2020 [F.No. 197/55/2018-ITA-I] dated 03.01.2020 authorized the Commissioners of Income-tax to admit applications of condonation of delay in filing Form No. 9A and Form No. 10 for AY 2018-19 or for any subsequent Assessment Years where there is delay of up to 365 days and decide on merits.
2. Further to the powers delegated to Commissioners of Income-tax as discussed above, the CBDT hereby directs that where there is delay of beyond 365 days upto three years in filing Form No. 9A and Form No. 10 for Assessment Year 2018-19 or for any subsequent Assessment Years, the Pr. Chief Commissioners of Income-tax/ Chief Commissioners of Income-tax are authorized to admit such applications of condonation of delay under section 119(2) of the Act and decide on merits.
3. The Pr. Chief Commissioner/Chief Commissioner of Income-tax, as the case may be, while entertaining such applications for condonation of delay in filing Form No. 9A and Form No. 10, shall satisfy themselves that the applicant was prevented by reasonable cause from filing such Form within the stipulated time. In respect of Form No. 10, the Pr. Chief Commissioner/Chief Commissioner of Income-tax, as the case may be, shall also satisfy themselves that the amount accumulated or set apart has been invested or deposited in anyone or more of the forms or modes specified in sub-section (5) of section 11 of the Act.
4. Further, the Pr. Chief Commissioner/ Chief Commissioner of Income-tax, as the case may be, shall preferably dispose the application within three months of receipt of the application.
[Sourabh Jain]
Under Secretary (ITA-I)
Download CBDT Circular No. 17/2022 dated 19.07.2022 on condonation of delay in filing of Form No. 9A and Form No. 10 in PDF format
2 Comments
we are registered u/s 12 AA of Income Tax act and filed return of income on dated 15.1.2022 but due to certain circumstances as portal not working form 10 B filed on 22.2.2022 .CPC has raised demand and not considering Form 10 B . How to condone delay
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