THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA W.P.No.34881 & 34900 OF 2023 COMMON ORDER : (per Hon’ble Sri Justice P.Sam Koshy)

Heard Mr. A.V.Siva Kartikeya, learned counsel for the petitioner and Ms. B.Sapna Reddy, learned Junior Standing Counsel representing Mr.J.V.Prasad, learned Senior Standing Counsel for the Income Tax Department. Perused the record.

2. Since the issue in both the writ petitions is common, we intend to dispose of both the writ petitions by a common order and the lead case is being treated as W.P.No.34881 of 2023.

3. The instant writ petition has been filed seeking for a direction to the respondents to consider and decide the application filed by the petitioner under Section 119(2)(b) of the Income Tax Act, 1961 (for short ‘the Act’) dated 10.04.2021.

4. The contention of the petitioner was that the return was to be filed within the extended period of time i.e., 31.10.2019. However, because of the fact that the petitioner was not provided with the State audit report by the Auditors, the return could not be filed and the return was filed only on 06.01.2020 after the audit report was received by the petitioner on 07.11.2019. The petitioner had filed a petition under Section 119(2)(b) of the Act before respondent No.4. Even as on date, the said condone delay petition dated 10.04.2021 stands undecided and is still pending consideration before the authorities concerned. Meanwhile, however, the Government of India, Ministry of Finance, Department of Revenue i.e., Central Board of Direct Taxes has issued Circular No.13 of 2023 dated 26.07.2023 in respect of the circumstances under which the delay in submission of return could be condoned. The relevant portion of that Circular, for ready reference, is being reproduced herein as under:

3. Applications have been received in the Central Board of Direct Taxes (hereafter referred to as 'the Board') from co-operative societies claiming deduction u/s 80P of the Act for various assessment years from A Y 2018-19 to A Y 2022-23, regarding condonation of delay in furnishing return of income and to treat such returns as 'returns furnished within the due date under sub-section (1) of section 139 of the Act stating that delay in furnishing return of income was caused due to delay in getting the accounts audited under respective State Laws.

4. In order to mitigate genuine hardship in cases referred to in para 3, the Board, in exercise of the powers conferred under section 119 of the Act, hereby directs that the Chief Commissioners of Income-tax (CCsIT)/Directors General of lncome tax (DGsIT) are authorised to deal with such applications of condonation of delay pending before the Board, upon transfer of such applications by the Board, and decide such applications on merits, in accordance with the law.

5. The Board hereby further directs that the CCsIT/DGsIT, henceforth, shall admit all pending as well as new applications for condonation of delay in furnishing returns of income claiming deduction u/s 80P of the Act, filed either in the Board or in field formation for the assessment years 2018-19 to 2022-23 and decide such applications on merits in accordance with the law where such person is required to get his accounts audited under respective State Laws.

6. In the context of para-5 above, the CCslT/DGsIT while deciding such applications for condonation of delay in furnishing return of income, shall satisfy themselves that the applicant's case is a fit case for condonation under the existing provisions of the Act. The CCslT/DGsIT shall examine the following while deciding such applications –

(i) the delay in furnishing the return of income within the due date under sub-section (1) of section 139 of the Act was caused due to circumstances beyond the control of the assessee with appropriate documentary evidence/s;

(ii) where delay in furnishing return of income was caused due to delay in getting the accounts audited by statutory auditors appo