SECTION
119 OF THE INCOME-TAX ACT, 1961 - INCOME-TAX AUTHORITIES - INSTRUCTIONS
TO SUBORDINATE AUTHORITIES - CONDONATION OF DELAY IN FILING REFUND
CLAIM AND CLAIM OF CARRY FORWARD LOSSES UNDER SECTION 119(2)(b)
CIRCULAR 9/2015 [F.NO.312/22/2015-OT],
DATED 9-6-2015
In
supersession of all earlier Instructions/Circulars/Guidelines issued by
the Central Board of Direct Taxes (the Board) from time to time to deal
with the applications for condonation of delay in filing returns
claiming refund and returns claiming carry forward of loss and set-off
thereof under section 119(2)(b) of the Income-tax Act, (the Act) the
present Circular is being issued containing comprehensive guidelines on
the conditions for condonation and the procedure to be followed for
deciding such matters.
2.
The Principal Commissioners of Income-tax/Commissioners of Income-tax
(Pr.CsIT/CsIT) shall be vested with the powers of acceptance/rejection
of such applications/claims if the amount of such claims is not more
than Rs.10 lakhs for any one assessment year. The Principal Chief
Commissioners of Income-tax/Chief Commissioners of Income-tax
(Pr.CCsIT/CCsIT) shall be vested with the powers of acceptance/rejection
of such applications/claims if the amount of such claims exceeds Rs.10
lakhs but is not more than Rs. 50 lakhs for any one assessment year. The
applications/claims for amount exceeding Rs.50 lakhs shall be
considered by the Board.
3.
No condonation application for claim of refund/loss shall be
entertained beyond six years from the end of the assessment year for
which such application/claim is made.This limit of six years
shall be applicable to all authorities having powers to condone the
delay as per the above prescribed monetary limits, including the Board. A
condonation application should be disposed of within six months from
the end of the month in which the application is received by the
competent authority, as far as possible.
4.
In a case where refund claim has arisen consequent to a Court order,
the period for which any such proceedings were pending before any Court
of Law shall be ignored while calculating the said period of six years,
provided such condonation application is filed within six months from
the end of the month in which the Court order was issued or the end of
financial year whichever is later.
5.
The powers of acceptance/rejection of the application within the
monetary limits delegated to the Pr.CCsIT/CCsIT/Pr.CsIT/CsIT in case of
such claims will be subject to Following conditions:
i. | At the time of considering the case under Section 119(2)(b), it shall be ensured that the income/loss declared and/or refund claimed is correct and genuine and also that the case is of genuine hardship on merits. | |
ii. | The Pr.CCIT/CCIT/Pr.CIT/CIT dealing with the case shall be empowered to direct the jurisdictional assessing officer to make necessary inquiries or scrutinize the case in accordance with the provisions of the Act to ascertain the correctness of the claim. |
6.
A belated application for supplementary claim of refund (claim of
additional amount of refund after completion of assessment for the same
year) can be admitted for condonation provided other conditions as
referred above are fulfilled. The powers of acceptance/rejection within
the monetary limits delegated to the Pr.CCsIT/CCsIT/Pr.CsJT/CsIT in case
of returns claiming refund and supplementary claim of refund would be
subject to the following further conditions:
i. | The income of the assessee is not assessable in the hands of any other person under any of the provisions of the Act. | |
ii. | No interest will be admissible on belated claim of refunds. | |
iii. | The refund has arisen as a result of excess tax deducted/collected at source and/or excess advance tax payment and/or excess payment of self-assessment tax as per the provisions of the Act. |
7.
In the case of an applicant who has made investment in 8% Savings
(Taxable) Bonds, 2003 issued by Government of India opting for scheme of
cumulative interest on maturity but has accounted interest earned on
mercantile basis and the intermediary bank at the time of maturity has
deducted tax at source on the entire amount of interest paid without
apportioning the accrued interest/TDS, over various financial years
involved, the time limit of six years for making such refund claims will
not be applicable.
8.
This circular will cover all such applications/claims for condonation
of delay under section 119(2xb) which are pending as on the date of
issue of the Circular.
9.
The Board reserves the power to examine any grievance arising out of an
order passed or not passed by the authorities mentioned in para 2 above
and issue suitable directions to them for proper implementation of this
Circular. However, no review of or appeal against the orders of such
authorities would be entertained by the Board.
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