[Section 293B]: Condonation of Delay in Obtaining Approval

Section 293B of the Income Tax Act, 1961, empowers the Central Board of Direct Taxes (CBDT) to condone delays in obtaining approvals for certain tax-related actions. This provision ensures that procedural delays do not invalidate otherwise valid tax proceedings.

1. When Does Section 293B Apply?

This section covers delays in obtaining approvals for:

✅ Reopening of Assessments (Section 147/148)

✅ Search & Seizure Operations (Section 132)

✅ Requisition of Books/Documents (Section 132A)

✅ Other Proceedings requiring prior approval (e.g., Section 153C)

Example: If the Assessing Officer (AO) seeks approval for reopening an assessment but receives it after the limitation period, CBDT can condone this delay under Section 293B.

2. Key Conditions for Condonation

For CBDT to condone a delay, the following must be satisfied:

✔ Application Filed Before CBDT: The AO must apply for condonation within 6 months from the end of the month in which the approval was granted.

✔ Sufficient Cause: The delay must be due to genuine administrative reasons (e.g., pending approval from higher authorities).

✔ No Malafide Intent: The delay should not be due to negligence or deliberate inaction.

3. Judicial Interpretation

• Limited to Procedural Delays: Courts have held that Section 293B cannot cure jurisdictional defects(e.g., approval granted by an unauthorized officer).
• Not Automatic: CBDT must apply its mind and record reasons for condonation (CIT vs. S. Goyanka Lime & Chemicals Ltd.).

4. Practical Example

Scenario:

• The AO issues a notice for reassessment (Section 148) on March 30, 2025, but the approval from the Principal CIT was received on April 5, 2025(after the financial year ended).
• Action: The AO applies to CBDT for condonation, citing pending internal approvals.
• Outcome: CBDT condones the 5-day delay, validating the reassessment.

5. Exceptions & Limitations

❌ No Condonation for Time-Barred Cases: If the delay exceeds statutory limitation periods (e.g., Section 149), CBDT cannot extend the timeline.

❌ No Condonation for Jurisdictional Errors: If the approval itself is invalid (e.g., granted by an incompetent authority), Section 293B does not apply.

6. Comparison with Other Provisions

Key Takeaways

✔ Procedural Safeguard: Prevents technical delays from invalidating tax actions.

✔ Limited Scope: Only applies to approval-related delays, not substantive defects.

⚠ Taxpayer’s Right: Can challenge condonation if malafide or beyond CBDT’s powers.

Note: Taxpayers should verify if condonation was properly granted before contesting reassessment notices.