CBDT Issues S. 119 Order To Extend Time Limit For Processing U/s 143(1) Of Returns With Refund Claims

The CBDT has issued an order u/s 119 of the Income-tax Act dated 25.10.2016 stating that in instances where a valid return-of-income having ‘claim of refund’ for AYs 2014-2015, 2013-2014 and 2012-2013 was filed either under section 139 or 142(1) of the Act and in which the time for sending intimation under sub-section (1) of section 143 has lapsed, the time-frame prescribed in second proviso to sub-section (1) of section 143 is required to be processed by 31.03.2017. Further, intimation of processing and consequential refund, if any, is required to be issued expeditiously as per the prevailing norms and existing provisions of the Act.

F.No. 225/220/2016-ITA.II
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

North Block, New Delhi, the 25th of October, 2016

Order under section 119 of Income-tax Act, 1961

Subject: Issue of Intimation under section 143(1) of Income-tax Act, 1961 beyond the prescribed time in non-scrutiny cases-reg.-

It has come to notice that some returns-of-income having ‘claim of refund’ pertaining to Assessment Years 2014-2015, 2013-2014 and 2012-2013 were not processed within the time-frame prescribed under sub-section (1) of section 143 of the Income-tax Act, 1961 (‘Act’). Consequently, intimation of ‘amount of refund due’ which is issued to the taxpayer after processing the income-tax return could not be sent. This has led to a situation where the concerned taxpayer is unable to get his legitimate refund in accordance with provisions of the Act, although the delay is not attributable to him.

2. On consideration of the matter, in instances where a valid return-of-income having ‘claim of refund’ for Assessment Years 2014-2015, 2013-2014 and 2012-2013 was filed either under section 139 or 142(1) of the Act and in which the time for sending intimation under sub-section (1) of section 143 has lapsed, the Central Board of Direct Taxes (`CBDT’), by virtue of its powers under section 119 of the Act, hereby relaxes the time-frame prescribed in second proviso to sub-section (1) of section 143 and directs that such returns of-income shall now be processed by 31.03.2017. Further, intimation of processing and consequential refund, if any, shall be issued expeditiously as per the prevailing norms and existing provisions of the Act.

3. However, the above relaxation shall not be applicable to those cases where the said return-of-income was not processed in view of provisions of sub-section (1D) of section 143 of the Act. Further, this relaxation shall not be applicable to those cases where either demand is shown as payable in the return-of-income or is likely to so arise after processing the return-of-income.

4. The contents of this order may be brought to the notice of all for necessary compliance.
(Rohit Garg)

Deputy Secretary to the Government of India