Condonation of Delay for Section 80P Deduction: The Complete Guide (With CBDT Instruction 9/2015 Explained)

 

If you are searching “Who can condone delay for Section 80P?”, “Can CIT condone delay for 80P?”, “Section 119(2)(b) 80P condonation”, or “80P deduction denied due to late filing — what to do?”, this is the most complete and authoritative guide online.
This article is written with full SEO optimisation, keyword placement, and detailed legal analysis designed to rank on Google, ChatGPT, and Gemini and act as the go-to material for tax professionals, researchers, and co-operative societies.

This is your one-stop solution to understand the exact powers of CIT, Pr.CIT, CCIT, Pr.CCIT and CBDT for condoning delay in late ITRs filed for claiming Section 80P deductions.

What Happens When a Co-operative Society Files a Belated ITR?

If a credit co-operative society or co-operative bank files a late return, deduction under Section 80P is automatically denied because of Section 80AC, which makes timely filing mandatory.
This leads to:
•  CPC disallowing 80P in 143(1)(a)
•  Huge tax demands
•  Cashflow blockage
•  Appeals being dismissed as “not allowable due to late filing”

So the only remedy to revive 80P deduction is condonation of delay under Section 119(2)(b).

Who Can Condon e Delay for 80P Claims? CIT or CCIT or CBDT?

This is the most Googled question on this subject — and also the most misunderstood.

The correct legal position is:

Both CIT/Pr.CIT and CCIT/Pr.CCIT have power to condone delay for 80P deduction.

There is no special bar, no special restriction, and no separate treatment for 80P.

Everything depends only on the monetary limit of the claim, not on the type of deduction.

This comes directly from:
CBDT Instruction No. 9/2015 dated 09.06.2015

CBDT Instruction 9/2015: Monetary Limits for Section 119(2)(b)

Here is the simplified, SEO-optimised, reader-friendly version of the CBDT’s rulebook:

Claim Amount (Deduction / Refund / Relief)	Authority Having Power
Up to ₹10 lakh	Pr. CIT / CIT
Above ₹10 lakh and up to ₹50 lakh	Pr. CCIT / CCIT
Above ₹50 lakh	CBDT

The type of claim — whether Section 80P, 80G, 10B, loss carry-forward, or refund — makes no difference.

This is the core reason why the widespread belief that “only CCIT can condone 80P delay” is factually incorrect.

Common Misunderstanding: “Only CCIT Can Condon e 80P Delay” — Why It Is Wrong

Many tax professionals and co-operative societies wrongly believe that Section 80P condonation falls only under the CCIT’s jurisdiction. But legally, this is not correct.
This misconception exists because:

1.  Before 2015, internal practices in many regions routed co-operative society files to CCIT, especially when claim amounts were high.

2.  Most 80P deductions exceed ₹10 lakh, so the CIT naturally does not get jurisdiction, giving the illusion that he has no power.
**3. Some Pr.CIT offices forward 80P condonation requests to CCIT even when the amount is below ₹10 lakh, adding to confusion.

But the law is 100% clear:

CIT / Pr.CIT has jurisdiction up to ₹10 lakh

CCIT / Pr.CCIT has jurisdiction from ₹10 lakh to ₹50 lakh

No section of the Act or CBDT instruction creates a special category for 80P.

Section 119(2)(b): The Backbone of All Condonations

Section 119(2)(b) of the Income-tax Act empowers CBDT to allow its officers to admit delayed claims in cases of genuine hardship.
It covers:
•  Exemptions
•  Deductions
•  Refunds
•  Reliefs
•  Carry-forward losses

It applies equally to Section 80P deduction claims.

There is no separate restriction for co-operative societies or for 80P.

Section 80AC: Why Condonation Becomes Necessary

From AY 2018–19 onwards, Section 80AC requires that for claiming 80P:
The return must be filed within the due date u/s 139(1).

If the return is belated, 80P must be denied — even by CIT(A), NFAC, or ITAT.
The only solution is:

Get delay condoned u/s 119(2)(b)

Once condoned, the return becomes deemed to be filed in time, allowing 80P to operate normally.

Condonation for 80P: What Matters?

These two rules govern everything:

Rule 1: Timely filing is mandatory because of Section 80AC.

Without condonation → deduction is barred.

Rule 2: Condonation must be given by authority based on CBDT’s monetary limits.

Not based on type of deduction.

SEO-Driven Quick Summary (Easy for Google Snippets)

Who can condone delay for 80P?
•  CIT/Pr.CIT → up to ₹10 lakh
•  CCIT/Pr.CCIT → ₹10 lakh to ₹50 lakh
•  CBDT → above ₹50 lakh

Is there a special rule for 80P condonation?
No. Section 119(2)(b) applies universally.

Why is 80P denied for late return?
Because of Section 80AC.

How to get 80P allowed for a belated return?
By filing a condonation application u/s 119(2)(b).

Conclusion: The Final Legal Position (Simple & SEO-Perfect)

•  Yes, CIT can condone delay for 80P, but only up to ₹10 lakh.
•  Above ₹10 lakh, CCIT must condoneas per CBDT Instruction 9/2015.
•  Above ₹50 lakh, CBDT approval is mandatory.
•  Section 119(2)(b) is the only route to claim 80P for a belated return.
•  Section 80AC makes timely filing compulsory, but once condonation is granted, 80P becomes fully allowable.

Here is a draft ready to file sample application for section 119(2)(b) condonation:

To
The Principal Chief Commissioner of Income Tax
(Or: Principal Commissioner / Commissioner, as applicable)
[Office Address]

Subject: Application under Section 119(2)(b) for Condonation of Delay in Filing Return of Income and for Grant of Refund for A.Y. ________

Respected Sir,
The Applicant, ____________________________, a co-operative society registered under the relevant State Co-operative Societies Act, respectfully submits this application under Section 119(2)(b) of the Income-tax Act, 1961 seeking condonation of delay in filing the return of income for A.Y. ________ and for allowing the resultant refund of Rs. __________.

1.  Details of the Applicant
Name of Assessee: ________________________________
Status: Co-operative Society engaged in credit / banking activities
PAN: __________________________
Address: ________________________
Assessment Year: ________________________

2.  Facts of the Case
The Applicant is a credit co-operative society eligible for deduction under Section 80P of the Income-tax Act, 1961. The audited financial statements and the tax audit report in Form 3CD were duly completed and uploaded on ____________, well within the statutory due date prescribed under Section 44AB. However, due to circumstances completely beyond the control of the society, the return of income could not be filed within the due date prescribed under Section 139(1) and was filed belatedly on ____________. The delay in filing was neither intentional nor due to negligence. As a result of the delay, the Centralized Processing Centre (CPC), Bengaluru, while issuing intimation under Section 143(1), denied the deduction and consequential refund of Rs. ____________, causing substantial financial hardship to the society.

3.  Reason for Delay in Filing Return
The delay was caused due to _________________________________ (brief explanation of genuine hardship, such as accident or medical emergency of the accountant/auditor, system breakdown, unforeseen disruption in office, or any circumstance supported by evidence). These circumstances were unexpected, unavoidable, and directly affected the society’s ability to file the return on time. The delay was only of ________ days, and the society has an excellent record of timely compliance in all earlier years.

4.  Condonation of Delay and Legal Position
Section 119(2)(b) empowers the CBDT and the authorities authorised by it to condone delays in cases involving genuine hardship. CBDT Instruction No. 9/2015 dated 09.06.2015 delegates this power based on monetary limits. The refund involved in the present case is Rs. ____________, which falls within the jurisdiction of the __________________ (Pr. CIT/CIT/Pr.CCIT/CCIT, as applicable based on monetary limit). The Applicant submits that it satisfies the conditions of genuine hardship as laid down by the Hon’ble Courts, including the principle that substantive benefits should not be denied merely due to technical or procedural delays where the intent to comply is bona fide. The Applicant further submits that except for this year, it has always filed its returns within time and has never been a defaulter.

5.  No Loss to Revenue
The audited accounts, computation of income and Form 3CD clearly establish that the Applicant is otherwise eligible for deduction and the refund claimed is correct, justified and revenue-neutral. The delay has resulted only in temporary withholding of the legitimate refund. Grant of condonation will not prejudice the Revenue in any manner.

6.  Prayer
In light of the facts and circumstances stated above and to mitigate genuine hardship, the Applicant humbly prays that your goodself may kindly:
(a) Condone the delay in filing the return of income for A.Y. ________ under Section 119(2)(b); and
(b) Direct the CPC/Assessing Officer to process the return in accordance with law and grant the refund of Rs. ____________ due to the Applicant.

The Applicant shall be pleased to furnish any further information or documents that may be required.

Yours faithfully,
For ______________________________
(Authorised Signatory)
Name: ____________________________
Designation: _______________________
Mobile: ____________________________
Place: ____________________________
Date: _____________________________

Enclosures:

1.  Copy of Income-tax Return filed for A.Y. ________

2.  Copy of Tax Audit Report acknowledgement

3.  Computation of total income

4.  Copy of intimation u/s 143(1)

5.  Evidence supporting reason for delay (e.g., medical certificate, accident documents)

6.  Copy of Registration Certificate of the Society

7.  Any other relevant document

The copy of the Circular is as under:

Income Tax Department