Condonation of delay u/s 119(2)(b) for Form 9A and 10 in trust cases for A.Y. 2016-17, 17-18, 18-19

CBDT vide circular 6/2020 Dt. 19.02.2020 has directed CIT to allow for condonation of delay in filing Form 9A (Application for exercise of option under clause (2) of the Explanation to sub-section (1) of section 11 of the Income – tax Act, 1961) and 10 (Statement to be furnished to the Assessing Officer/Prescribed Authority under sub-section (2) of section 11 of the Incomer-tax Act, 1961) for A.Y. 2016-17, 2017-18 and 2018-19 in genuine cases without any hindrance.

However such condonation will only be approved if return of income has been filed before 31st March of respective Assessment year. The text of circular is as follows:

“Representations have been received seeking condonation of delay in filing Return of Income by the Charitable institutions for the Assessment Year 2016- 17 onwards on the grounds of hardship. The Board has issued Circulars authorizing the Commissioners of Income Tax to admit belated applications of Form 9A and Fonn 10 and to decide on merit the condonation of delay U/S 11 9(2)(b) of the Income-tax Act, 1961 (Act). However, in those cases where the Income Tax Returns have also been filed beyond the due date prescribed under section 139(1) of the Act, the condonation of delay in filing of Form 9A & Form 10 by the Commissioners is not of any help to the assessee, as section 13(9) of the Act, inserted w.e.f. 01.04.2016, stipulates twin conditions of filing of Form 9A/Form 10 and also of filing Return of Income before the due date.

2. Accordingly, in continuation of earlier Circulars issued in this regard, with the view to prevent hardship to the assessee and in exercise of powers conferred under section 119(2)(b) of the Act, the CBDT has decided that where the application for condonation of delay in filing Form 9A and Form 10 has been filed , and the Return of Income has been filed on or before 31st March of the respective assessment years i.e. Assessment Years 2016- 17, 2017- 18 and 2018- 19, the Commissioners of Income-tax (Exemptions) are authorized u/s 119(2)(b) of the Act, to admit such belated applications for condonation of delay in filing Return of Income and decide on merit.”

As per section one can avail benefit of late filing of Form 9A/ 10 if the return of income has been filed before due date u/s 139(1). However after the above circular a further relief has been provided to people who have filed their return of income before 31st march of relevant assessment year.

You can read the full circular HERE.

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