The Central Board of Direct Taxes (“CBDT”), vide Circular No. 16/2024 dated 18 November 2024, has issued revised guidelines for condonation of delay in filing Form No. 9A, Form No. 10, Form No. 10B and Form No. 10BB under the Income-tax Act, 1961.
The circular, issued under section 119(2)(b) of the Act, aims to provide relief to charitable and religious trusts, institutions and funds that could not file the prescribed forms within the stipulated due dates due to reasonable causes. It also streamlines the process by clearly defining the authorities empowered to condone such delays and the timelines for filing applications.
Scope and Applicability
- Forms Covered: Form No. 9A, 10, 10B, and 10BB.
- Assessment Years: Assessment Year (AY) 2018-19 and all subsequent assessment years.
- Legal Standing: This circular is issued under section 119(2)(b) of the Income-tax Act, 1961, and supersedes all previous circulars or instructions regarding the condonation of delay for these specific forms.
Delegation of Powers
The authority to admit and deal with condonation applications is divided based on the length of the delay:
- Delay of up to 365 days: Handled by the Pr. Commissioners of Income Tax (Pr. CsIT) or Commissioners of Income Tax (CsIT).
- Delay of more than 365 days: Handled by the Pr. Chief Commissioners of Income Tax (Pr. CCsIT), Chief Commissioners of Income Tax (CCsIT), or Director Generals of Income Tax (DGsIT).
Conditions for Condonation
For an application to be entertained, the authorities must be satisfied of the following:
- Reasonable Cause: The applicant must prove they were prevented by a “reasonable cause” from filing the forms within the allowed time.
- Genuine Hardship: The case must represent “genuine hardship on merits”.
- Form No. 10 Specific Requirement: For applications involving Form No. 10, the authorities must specifically verify that the funds accumulated or set apart have been invested or deposited in the modes specified under section 11(5) of the Act.
Time Limits and Disposal
- Filing Deadline: No application will be entertained if it is filed beyond three years from the end of the assessment year for which the application is made.
- Effective Date: This three-year limit applies to all applications filed on or after November 18, 2024.
- Pending Applications: The delegated powers mentioned above also cover applications that were already pending as of the date the circular was issued.
- Disposal Goal: Authorities should aim to dispose of applications, as far as possible, within six months from the end of the month in which the application was received.