Claim refund even if there is delay in filing refund claim

Every year CBDT receives numerous applications for condonation of delay in filing returns claiming refund and returns claiming carry forward of loss and set-off. To deal with such issues, CBDT has issued Circular dated 9th June, 2015 containing comprehensive guidelines on the conditions for condonation and the procedure to be followed for deciding such matters.   images (1)

The major highlights of the said Circular can be summed as:

  1. The powers of acceptance/rejection of the application delegated to following:
  • 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 inure than Rs. 50 lakhs for any one assessment year.
  • The applications/claims for amount exceeding Rs. 50 lakhs shall be considered by the Board.
  1. Such of acceptance/rejection shall be subject to following conditions:
  • Ensure that the income/loss declared and /or refund claimed is correct and genuine and also that the case is of genuine hardship on merits.
  • The designated officer dealing with the case shall be empowered to direct the jurisdictional assessing officer to make necessary inquiries or scrutinize.
  1. 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.
  2. 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.
  3. 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.
  4. This circular will cover all such applications/claims for condonation of delay under section I 19(2Xb) which are pending as on the date of issue of the Circular.

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