Condonation of delay in filling I.T. returen under section 119(2)(b) of the I.T. Act, 1961 and allowance of refund-regarding. - Income Tax - 12

Instruction No : 12 Date of Issue : 30.10.2003 Subject : Condonation of delay in filling I.T. returen 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 and also Circular No. 8/2001, dated 16-5-2001 issued from F. No. 212/35/99-ITA-II. As per the existing procedure laid down by the aforesaid Order/Circulars, the powers of condonation of delay are exercisable by Commissioners of Income-tax if the claim is below Rs. 10,000, and by the Chief Commissioners of Income-tax if it is above Rs. 10,000 and up to Rs. 1,00,000. In respect of cases where amount involved is more than Rs. 1,00,000, the applications/requests are dealt with and decided by the Board in accordance with the powers vested in the Board. 2. The matter regarding delegation of powers for acceptance/rejection of applications, requests for condonation of delay under section 119(2)(b) of the Income-tax Act, 1961 has been receiving the attention of the Board. In modification of the aforesaid Orders/Circulars, the Board has decided to vest the CCIT with the powers of acceptance/rejection of such applications/requests involving refund claims upto Rs. 5,00,000, and the decision of the CCIT would be final. The CIT will have the powers of acceptance/rejection in cases involving refund claims up to Rs. 1,00,000. However, cases involving refund claims exceeding Rs. 5,00,000 would continue to be processed by the Central Board of Direct Taxes, both for acceptance and rejection. 3. It has also been decided that cases where delayed claims of refunds are being considered would be taken up for scrutiny. 4. The powers of acceptance/rejection within the monetary limits delegated to the CCIT as above would be subject to the following conditions : (i) the refund has arisen as a result of excess tax deducted/collected at source and payments of advance tax under the provisions of Chapters XVIIB, XVIIBB and XVIIC, respectively and the amount of refund does not exceed Rs. 5,00,000 for any one assessment year; (ii) the income of the assessee is not assessable in the hands of any other person under any of the provisions of the Act; (iii) no interest will be admissible on the belated refund claims; (iv) if the refund arises from the return of income filed for the first time, then the CCIT will be empowered to direct the Assessing Officer to make a regular assessment under section 143(3) and then issue the refund, if any; (v) no claims under this provision will be entertained where a period of more than 6 assessment years prior to the current assessment year has elapsed; (vi) these instructions will cover the requests for condonation of delay under section 119(2)(b) where such requests have been filed in the Board, or have been forwarded to the Board by CCIT/DGIT. These instructions would, however, not cover cases prior to assessment year 1996‑97. 5. These instructions may be brought to the notice of all the officers working under your charge