CBDT revamps refund claims procedure; No interest on belated refund claims; No refund claims to be entertained beyond six years period. - Income Tax - Instruction No. 13/2006

INSTRUCTION NO. 13/2006 Dated: December 22, 2006 Condonation of delay in filing IT return under section 119(2)(b) of the I.T. Act, 1961 and allowance of refund - regarding. 1. The procedure for dealing with the applications for condonation of delay in filing returns and claiming refund is presently governed by the Board's earlier orders/circulars issued under section 119(2)(b) of the Income-tax act, 1961, namely, F.No.225/208/93-ITA-II dated 12.10.1993 read with Board's Circular No.670 dated 26.10.1993 issued from F.No.225/208/93-ITA-II dated 12.10.1993 read with Board's Circular No.670 dated 26.10.1993 issued from F.No.225/208/93-ITA-II, Circular No.8/2001 dated 16.5.2001 issued from F.No.212/35/99-ITA-II and also Instruction No. 12/2003 dated 30/10/2003 issued from F.No.212/338/2002-ITA-II. 2. In modification to earlier Instructions/Circulars, this ?Instruction vests the Chief Commissioners of Income Tax (CCsIT) with powers for acceptance/rejection of applications/claims under Section 119(2)(b) for condonation of delay in filing return involwing refund claims above Rs.10,00,000/- and upto Rs.50,00,000/-. It also vests the commissioners of Income Tax (CsIT) with powers of acceptance/rejection of applications/claims under Section 119(2)(b) for condonation of delay in filing return involving refund claims upto Rs.10,00,000/-. 3. The applications/claims under Section 119(2)(b) for condonation of delay involving refund claims exceeding Rs.50,00,000/- would continue to be processed by Central Board of Direct Taxes, both for acceptance and rejection. 4. No fresh application for claim of refund will be entertained beyond six years from the end of the assessment year for which the application/claim is made. 5. The powers of acceptance/rejection within the monetary limits delegated to the CCsIT/CsIT would be subject to the following conditions:- a. The refund has arisen as a result of excess tax deducted/collected at source and payment of advance tax under the provisions of Chapter XVIIBB and XVII-C respectively and the amount of refund does not exceed Rs.50,00,000/- in respect of CCsIT and Rs.10,00,000/- in respect of CsIT for any one assessment year; b. The income of the assessee is not assessable in the hands of any other person under any of the provisions of the Act; and c. No interest will be admissible on the belated refund claims. 6. At the time of considering the case under te provisions of section 119(2)(b), it should be ensured that the income declared and refund claimed are correct and genuine and also that the case is of genuine hardship on merits. 7. The CCsIT/CsIT are empowered to direct the Assessing Officer to make necessary enquiries or scrutinize the case in accordance with provisions of the Income Tax Act to ascertain the correctness of the claim. 8. This instruction will also cover those applications/claims for condonation of delay under Section 119(2)(b) which are pending as on the date of issue of this instruction. 9. These instructions may be brought to the notice of all the officers working under your charge. F.No.312/47/2005-OT (J.P. Chandraker) deputy Secretary to the Govt. of India