Online Condonation Facility Launched for Trust Forms on Income-Tax Portal

Income-tax Portal Update: Online Condonation Request for Form 9A / Form 10 / Form 10B / Form 10BB for trust — Step-by-Step Filing Guide

In our earlier articles, we highlighted a major practical gap: although the law permits condonation of delay for statutory forms (e.g., Form 9A, Form 10, Form 10B and Form 10BB), the Income Tax e-Filing Portal did not provide a clear, structured online workflow to raise a condonation request. This often forced taxpayers/trusts to adopt manual / email / physical representations or ad-hoc correspondence with the exemption charge, resulting in inconsistent processing and avoidable rejections.

As a welcome compliance facilitation step, the Government of India / Income Tax Department has now enabled a dedicated “Condonation Request” module on the portal, allowing an assessee/trust to raise and track a condonation request digitally—particularly relevant for condonation relating to statutory forms such as Form 9A / Form 10 / Form 10B / Form 10BB.

Important professional note (read before filing):
Merely having the portal option does not guarantee approval. Condonation requests are frequently rejected/closed due to (i) incorrect authority selection, (ii) incorrect computation of delay, (iii) weak “reasonable cause / genuine hardship” narrative, or (iv) incomplete annexures (acknowledgements, evidence, 11(5) proofs for Form 10 cases, etc.). Therefore, the request must be prepared like a formal petition, supported by a chronology + documentary evidence bundle, and aligned with the applicable CBDT framework.

Step 1: Navigate to the Condonation Request module and select the correct category

On the portal, go to:

Dashboard → Services → Condonation Request

You will see a screen titled “Condonation Request” with the prompt:

“Type of condonation request you want to proceed with”

Select:  “Application for Statutory Forms”

(Do not select “Delay in submission of ITR-V” for Form 9A / 10 / 10B / 10BB matters.)

Then click “Continue”.

Step 2: Create a new request (initiate the application)

After clicking Continue, the portal takes you to a page where it shows the status of condonation requests raised by you. If no request exists, it will display a message indicating that no application has been raised and provides a button:

“Create Condonation Request”

Click Create Condonation Request to initiate the filing of the condonation application. From this point onwards, ensure that the application is drafted in a professional petition format (not as a casual paragraph), because incomplete or loosely drafted applications are commonly returned/closed by the competent authority.

Add this “boxed point” in your article right after Step 2 (high rejection-prevention value)

Drafting Quality Warning (Why applications get rejected):
Before you press “Submit”, ensure your petition includes: (i) correct A.Y. and exact “days of delay” computation (due date vs actual filing date), (ii) the correct statutory form acknowledgement(s), (iii) a date-wise chronology proving reasonable cause, (iv) documentary evidence supporting the cause, and (v) form-specific proofs (especially Section 11(5) investment proof where Form 10 accumulation is involved). Inadequate documentation is the single biggest reason for rejection/closure.

We now proceed to discuss, in a structured and practical manner, the applicable rules and regulatory framework governing condonation of delay, along with the key compliance checkpoints, documentation requirements, and common pitfalls that must be kept in mind while filing such applications.

However, since condonation is inherently fact-specific and depends on the nature of delay, the assessment year involved, and the supporting evidence produced, readers are encouraged to seek clarification wherever required. For any assistance or case-specific guidance, you may feel free to contact us at the details mentioned at the end of this article.

1) The current controlling framework (single consolidated regime)

Governing circular (A.Y. 2018–19 onwards)

For A.Y. 2018–19 and subsequent years, condonation of delay in filing Form 9A / Form 10 / Form 10B / Form 10BB is governed by CBDT circular dated Nov 2024 issued under section 119(2)(b), which also supersedes earlier circulars/instructions for these years.

Delegated authority (based on length of delay)

• Delay up to 365 days → Jurisdictional Pr.CIT/CIT empowered to admit and dispose.
• Delay > 365 days → Jurisdictional Pr.CCIT/CCIT/DGIT empowered to admit and dispose.

Portal/CPC workflow for trusts often routes this through CIT(Exemption) / Pr.CCIT/CCIT(Exemption) in practice (see post-processing FAQs).

Mandatory satisfaction tests (what your petition must prove)

The authority must be satisfied that:

1. the applicant was prevented by reasonable cause, and

2. the case is of genuine hardship on merits.

Additional mandatory check (Form 10 cases): authority must also satisfy itself that the accumulated/set apart amount is invested/deposited in modes under section 11(5).

Hard stop limitation (most important “latest update”)

No condonation application is entertainable beyond 3 years from the end of the relevant A.Y. (applicable to applications filed on/after the circular date).

Practical impact (as on 31 Jan 2026):

• A.Y. 2022–23 → 3-year window typically closes 31.03.2026 (still within time).
• A.Y. 2021–22 → window typically closed 31.03.2025 (generally time-bar now).

Expected disposal timeline (administrative)

Condonation application should be disposed, as far as possible, within 6 months from end of month of receipt.

2) What each Form is (purpose + statutory hook)

3) Correct audit report selection: Form 10B vs Form 10BB (A.Y. 2023–24 onwards)

Under amended Rule 16CC / Rule 17B (effective 01.04.2023):
Form 10B is required where any of the following apply:

• Total income (before exemptions) exceeds ₹5 crore, or
• Foreign contribution received, or
• Any income applied outside India.

Form 10BB applies in other cases.

Common practical pitfall: filing the wrong audit form is treated as non-furnishing in prescribed form → leads to denial at processing unless cured/relaxed.

4) Due dates and “delay computation” (what to treat as the baseline)

Form 9A and Form 10

CPC post-processing FAQ explicitly notes that Form 9A and Form 10 are required to be filed within due date u/s 139(1) for the relevant claim (deemed application / accumulation).

Form 10B / 10BB

Portal guidance treats the audit report due date as linked to the return filing timeline (commonly one month prior to ROI due date u/s 139(1), as per e-filing guidance/FAQs).

Drafting tip: In the petition, always show a two-line computation:

1. statutory/portal due date (AY-specific)

2. actual filing date → “days of delay”

5) Department-aligned end-to-end workflow (to ensure CPC demand gets neutralized)

The post-processing FAQs for ITR-7 provide a very practical sequence where CPC denies exemption due to late/non-filing:

(A) If audit report Form 10B/10BB is late / not filed

• If filed belatedly → apply for condonation (≤365 days: CIT(E); >365 days but up to 3 years: Pr.CCIT/CCIT(E));
• If delay condoned → move JAO for giving effect/rectification.

(B) If Form 9A is late / not filed

• Same condonation route; after condonation, JAO passes necessary order.

(C) If Form 10 is late / not filed

• Same condonation route; after condonation, JAO passes necessary order.

(D) Special CPC mismatch problem (ITR vs Form amount mismatch)

CPC may allow minimum of the two amounts (return vs Form) and raise demand; remediate via revised form / revised return, and where revision itself becomes time-barred, condonation may again be needed.

Key precaution: Condonation order ≠ automatic CPC relief. You must push the giving-effect/rectification route through JAO as per the FAQ path, otherwise demand often remains “stuck”.

6) “Before you apply” — Top precautions (do’s/don’ts)

A. First screen: “Can we still file condonation?”

1. Check the 3-year bar first (from end of relevant AY). If time-barred, routine condonation is generally non-entertainable.

2. Address the correct authority based on delay bucket (≤365 vs >365). Misaddressing frequently leads to return/closure.

3. Align the petition to the current circular regime for AY 2018–19 onwards (supersession clause).

B. “Before you file” technical precautions

1. File the Form first (if not already on portal), obtain acknowledgement, then apply for condonation—this sequence is explicitly reflected in post-processing guidance.

2. Compute delay correctly (wrong day-count weakens maintainability/credibility).

3. Ensure you selected correct audit report (10B vs 10BB) as per rules.

4. Ensure acceptance/e-verification steps on portal are completed (CA upload alone may not be “furnishing” if acceptance pending, per portal mechanics/FAQs).

5. Ensure consistency of amounts between ITR and Forms (9A/10), to avoid CPC restricting claim to the lower amount.

7) “How to draft the petition” — what convinces the authority

Prepare a comprehensive condonation petition addressed to the competent authority, clearly setting out the facts in a structured manner, the exact period and computation of delay, the reasons constituting reasonable cause and genuine hardship, and the relief sought, supported by all relevant documentary evidence (acknowledgements, chronology, correspondence, portal screenshots, affidavits, and form-specific compliances). The application should also cite the applicable statutory provisions/CBDT circulars and include supporting judicial precedents relevant to your fact pattern to strengthen the merits of the request. Avoid filing a brief or generic application, as it materially increases the risk of rejection or closure. After filing, proactively follow up by meeting the concerned office/authority (or attending the scheduled hearing) with a complete paper book and a concise case synopsis to explain the matter and address any queries promptly.

8) Main common grounds on which applications get rejected / treated as “closed”

(A) Time-bar / non-entertainable

1. Filed beyond 3 years from end of AY → cannot be entertained (applications filed on/after circular date).

2. Wrong AY mapping / wrong year selected (delay computation collapses; authority may treat as defective).

Precaution: run a limitation sanity check as the first page of your petition.

(B) Wrong authority / procedural defects

1. Petition moved to wrong authority (≤365 vs >365) → often returned/closed.

2. Incomplete petition pack (missing PAN/AY, due dates, filing acknowledgements, day-count, authorisation, etc.) → defect memo → closure if not cured.

Precaution: include a one-page “Application Index + Annexure List” and a “days of delay” table.

Condonation of delay is not a mere portal formality; applications are often rejected/closed not only for technical reasons but also because the applicant fails to prove—and not merely state—reasonable cause and genuine hardship. Generic explanations such as “oversight”, “busy schedule” or “staff shortage” without documentary support are commonly treated as no reasonable cause, and simply blaming the CA/consultant for clerical lapse—without demonstrating internal controls, documented follow-ups, prompt corrective action after discovery, and the hardship that denial would cause—is generally disbelieved; further, non-response to departmental queries/hearing notices frequently results in disposal for non-prosecution. Therefore, the petition must be drafted as a complete, evidence-backed representation supported by engagement letters, email chains, reminders, portal tickets/screenshots, trustee/board minutes (where applicable) and affidavit/chronology. Equally important, condonation only cures delay and cannot rectify substantive non-compliance—hence the applicant must also ensure that the correct audit report form (Form 10B vs Form 10BB) is filed and effectively furnished (including portal acceptance/e-verification), that Form 10 cases are supported with clear proof of investment/deposit of the accumulated funds in section 11(5) modes, and that the trust’s registration/approval (e.g., 12AB / 10(23C)) is valid and operative for the relevant year; otherwise, exemption may still fail at processing/assessment even if delay is condoned.

9) Important “one-time relaxation” to cite where relevant (wrong 10B/10BB for A.Y. 2023–24)

CBDT issued an order/circular under section 119 allowing trusts/institutions that filed the wrong audit report form (10B instead of 10BB or vice-versa) on/before 31.10.2023 to re-furnish the correct applicable form on/before 31.03.2024, to avoid denial purely on wrong form.

Use this as a bonafide mistake precedent where your fact pattern involves “wrong form” rather than “late form”.

10) Case-law backdrop (supporting principles; but circular still governs condonation)

Supreme Court in CIT v. Nagpur Hotel Owners’ Association (247 ITR 201) held that the assessing authority must have the necessary Form 10 / accumulation information before completion of assessment, otherwise the claim cannot be granted at that stage; furnishing later would require reopening, which the Act does not contemplate.

Use in drafting: where the Form was late but was on record before assessment/processing consequence crystallised, you can argue substantial compliance—but you still must satisfy section 119(2)(b) “reasonable cause + genuine hardship” under the current circular regime.

Conclusion:

The introduction of an online “Condonation Request” module on the Income-tax portal is a positive compliance facilitation step, as it standardises the process of filing and tracking condonation requests for statutory forms such as Form 9A, Form 10, Form 10B and Form 10BB. However, approval continues to depend on the competent authority’s satisfaction on limitation, authority jurisdiction, “reasonable cause” and “genuine hardship”, supported by a complete documentary record and form-specific compliance proofs (including Section 11(5) investment evidence wherever Form 10 accumulation is involved). Accordingly, taxpayers/trusts should treat the portal filing as a formal petition process—ensuring correct due-date computation, correct form selection, complete annexures, and timely post-condonation follow-up with the Jurisdictional AO for giving effect—so that CPC demands do not remain unresolved.

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