income tax
The Central Board of Direct Taxes ('Board') has identified that several returns for various assessment years, including those up to assessment year 2017-18, were validly filed under sections 139, 142, or 119 of the Income-tax Act, 1961 ('Act') but could not be processed under subsection (1) of section 143 of the Act. This issue occurred due to technical problems or other factors not related to the assessees. As a result, notifications regarding the processing of these returns could not be sent within the one-year period mandated by the second proviso to subsection (1) of section 143 of the Act. This situation has hindered taxpayers from receiving their rightful refunds despite the delays not being their fault.
To address concerns from affected taxpayers, the Board has previously issued instructions under section 119 of the Act to relax the statutory time limit for processing these valid returns that included refund claims in non-scrutiny cases. An order dated 10th July 2020 established a deadline of 31st October 2020 for processing these returns.
In light of ongoing grievances related to refund issues, the Board has re-evaluated the situation. To ease the genuine hardship faced by taxpayers, the Board, exercising its authority under section 119 of the Act, has decided to extend the time limits outlined in the second proviso to subsection (1) of section 143. All valid returns filed up to the assessment year 2017-18, which include refund claims and are not processed under subsection (1) of section 143 due to expired timelines, can now be processed with prior administrative approval from the Pr.CCIT or CCIT. The related intimation must be sent to the taxpayer by 30th September 2021. Following this, the necessary refunds and subsequent actions under the Act will be conducted as per established procedures. To ensure proper oversight, once the Pr.CCIT or CCIT grants approval, the Pr.CIT or CIT will facilitate a request to the DGIT (Systems) to enable the Assessing Officer on a case-by-case basis.
It is important to note that the relaxation outlined above does not apply to the following types of returns:
This initiative aims to provide a pathway for taxpayers to receive their refunds while ensuring that the integrity of the processing system is maintained.