Legal Perspectives on Condonation of Delay in Income Tax Approvals : Clause 528 of Income Tax Bill, 2025 Vs. Section 293B of Income-tax Act, 1961

Central Government gets discretionary power to condone delays in tax approvals under Clause 528 and Section 293B

The Central Government or Board has discretionary power to condone delays in obtaining required approvals under both Clause 528 of the Income Tax Bill, 2025 and Section 293B of the Income-tax Act, 1961. Both provisions use nearly identical language, requiring 'sufficient cause' for condonation without defining specific criteria. The power applies to all approvals required before specified dates, including exemptions for charitable trusts, corporate restructuring, and tax incentives. While providing administrative flexibility and relief from rigid timelines, the provisions lack procedural guidelines, time limits for seeking condonation, and appeal mechanisms. The discretionary nature requires authorities to exercise judgment based on factors like administrative delays, genuine mistakes, or force majeure events. This mechanism balances procedural compliance with substantive justice, reducing litigation while requiring clear administrative guidelines to prevent inconsistent application and ensure transparency in tax administration.