Condonation of delay and section 80P deduction require fresh verification when the return delay is regularised under section 119(2)(b).

A delayed return filed beyond the section 139(1) due date was initially used to deny deduction under section 80P through section 80AC, but the Principal Chief Commissioner had condoned the delay under section 119(2)(b) read with CBDT Circular No. 13/2023. Once that condonation existed, the effect of delay could not be ignored and the assessment had to be reconsidered on that basis. The matter was remitted to the Assessing Officer to verify the condonation order, give effect to it, and pass a fresh order in accordance with law.

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Issues: Whether the assessee's claim for deduction under section 80P could be examined in the light of the condonation of delay granted under section 119(2)(b), and whether the matter required remand for giving effect to such condonation.

Analysis: The assessee's return for the relevant assessment year was filed beyond the due date prescribed under section 139(1), and the lower authorities had denied the deduction by invoking section 80AC. The record also showed that the Principal Chief Commissioner of Income-tax had condoned the delay in filing the return under section 119(2)(b) read with CBDT Circular No. 13/2023. Once such condonation was granted, the consequence of delay could not be ignored, and the assessment had to be reconsidered after verifying the effect of the condonation order.

Conclusion: The issue was remitted to the Assessing Officer with a direction to give effect to the condonation order and pass a fresh order after due verification, allowing the deduction under section 80P in accordance with law. The assessee succeeded to that extent.

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