Condonation of delay in filing of Income Tax Return by CBDT: Section 119(2)(b)

Section 119(2)(b) empowers CBDT to direct income tax authorities to allow any claim for exemption, deduction, refund and any other relief under the income tax act even after the expiry of the time limit to make such claim. However, such claims will only be allowed by the income tax authority provided, making such a claim within the prescribed due date was genuinely out of the control of the taxpayer.

Time limit to file application for condonation

Application for condonation u/s 199(2)(b) can be filed within 6 years from the end of assessment year

Time limit to process the application

The application filed has to be accepted/rejected within 6 months from the end of the month in which application was submitted

How to file the application u/s 119(2)(b)

A detailed note stating as to why the Return could not be filed has to be submitted along with the documents supporting the claim. This has to be submitted in 4 sets with CBDT new Delhi, PCIT, CIT and the AO of the ward to which the PAN of the assesse belongs to.

Once the documents are submitted CBDT will direct the PCIT to collect the required documents to verify whether there was a genuine hardship to file the retun of income within due date.

PCIT in turn will direct jurisdictional AO to provide the report based on the documents. AO can also seek for additional documents which he considers necessary to verify the genuineness for the delay.

Once AO collects all the necessary documents a report   will be prepared and submitted with the PCIT. PCIT will provide all the information to the CBDT.

Upon receipt of report from PCIT but before concluding the case the CBDT will issue a show cause notice to the assesse to give a detailed reply as to why the return of income filed should be condoned.

Once the assesse submits a response the CBDT will either accept and condone the delay in filing or reject the application.

Next Step upon acceptance of application u/s 119(2)(b)

If the return of income is condoned the CBDT will issue an order u/s 119(2)(b). Upon receipt of the same the assesse has to submit a request with jurisdictional assessing officer to provide a letter with DIN.

The AO will go through the documents and issue a letter with DIN and with the same DIN assesse has to file return u/s 119(2)(b) though the return was already filed it’s the requirement to file Return of income one more time u/s 119(2)(b).

Conclusion: Condonation under Section 119(2)(b) provides relief to taxpayers facing genuine difficulties in filing their income tax returns within the stipulated time frame. By allowing the CBDT to consider claims even after the expiry of the deadline, this provision ensures fairness and flexibility in tax administration. Understanding the process and adhering to the prescribed steps can help taxpayers navigate this aspect of tax compliance effectively.