Circular No. 17 /2024, dated 18-11-2024
Section 115BAA and 115BAB of the Income Tax Act, 1961 provides for special regimes of taxation for Companies. However, the respective sections provide that the beneficial provisions are applicable only if the option is exercised in Form 10-IC and Form 10-ID, respectively, on or before the due date specified under section 139(1) for furnishing the returns of income.
For Assessment Years 2020-21 and 2021-22, circulars were issued to condone the delay in furnishing forms 10-IC/10-ID. The CBDT has received various representations stating that Form No. 10-IC or Form No. 10-ID could not be filed for various assessment years on or before the due date or extended due date.
Addressing the genuine hardship caused to assessees in exercising the option, the Central Board of Direct Taxes (CBDT) has issued a circular to condone the delay in furnishing the forms for AY 2020-21, 2021-22 and 2022-23.
The CBDT has authorised officers to handle applications for condoning delays in filing Forms 10-IC or 10-ID for Assessment Years 2020-21, 2021-22, and 2022-23.
It has been clarified that Pr. Commissioners of Income Tax (Pr. CslT’)/ Commissioners of Income Tax (‘CsIT’) to admit and deal with the applications for condonation of delay in filing of Form No. 10-IC or Form No. 10-ID for Assessment Years 2020-21, 2021-22 and 2022-23 where there is a delay of up to 365 days. However, the Pr. Chief Commissioners of Income Tax (Pr. CCsIT’)/ Chief Commissioners of Income Tax (‘CCsIT’)/Directors General of Income Tax (‘DsGIT’) to admit and deal with the applications for condonation of delay where there is a delay of more than 365 days.
Further, The Pr. CCsIT/CCsIT/ DsGIT/Pr. CsIT/ CsIT shall ensure that the following conditions are satisfied while deciding such applications:
- The return of income for the relevant assessment year has been filed on or before the due date specified under section 139(1) of the Act;
- The assessee has opted for taxation under section 115BAA in case condonation of delay is for Form No. 10-IC and under section 115BAB in case the condonation of delay is for Form No. 10-ID, in “Filing Status” in “Part A-GEN” of the Form of Return of Income ITR-6; and
- The assessee was prevented by reasonable cause from filing such Form before the expiry of the time allowed, and the case is of genuine hardship on merits.
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