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.
No Condonation for claim of refund or loss shall be entertained beyond six years from the end of the assessment year for which application or claim is made. The limit of six years is uniform for all authorities considering the application or claim.
In 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 such Court Order was issued or the end of financial year, whichever is later.
A belated application for claim of additional amount of refund after completion of assessment for the same year (Supplementary claim of refund) can be admitted subject to conditions.
In the case of an applicant who has made investment in 8% (Taxable) Bonds, 2003 issued by the Government of India opting for scheme of cumulative interest on maturity but accounted interest earned on accrual 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 and TDS over financial years involved, the time limit of six years for making such refund claim will not apply.
The Powers of acceptance or rejection of application for Condonation subject to the following conditions:
It shall be ensured that the income or loss declared and or refund claimed is correct and genuine as well as it was due to genuine hardship on merits;
The Authority dealing with (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.
The Income of the assessee is not assessable in the hands of any other person under any other provisions of the Act;
No interest will be admissible on belated claim of refund;
The refund has arisen as a result of excess of 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.
Monetary Limits and Authority for Condonation of delay:
Authority for considering Condonation Application/Claim
Up to Rs. 10 Lakhs ( For One Assessment Year)
Principal Commissioner / Commissioner of Income Tax(Pr.CIT/CIT)
More than Rs. 10 Lakhs but not more than Rs. 50 Lakhs ( For One Assessment Year)
Principal Chief Commissioner / Chief Commissioner of Income Tax(Pr.CCIT/CCIT)
More than Rs. 50 Lakhs
Time Limit for Disposal of application:
Application for Condonation should be disposed of within in six months from the end of the month in which the application is received by the competent authority as far possible.
How to go about it
No specific form or format for making such application is prescribed so the application can be made on plain paper stating the facts of the case in detail, which will help the authorised commissioner to take the appropriate decision.
Though no specific process has been prescribed under these instructions, I would suggest you to file your income tax return along with the application for condonation of delay. So in case your application is accepted, your return will also be taken up for processing immediately.
Format of Condonation Letter
Commissioner of Income Tax
The relevant address of the Tax department
PAN Number: —————————-Employment number in case of Govt. officials
I have submitted my income tax return(s) for assessment year (s)……………… vide acknowledgement number ………dated………at ………………………(copy enclosed with this)
Due to exigencies of service and being deployed in filled —–or any other reason whatever applicable in the assessee’s case ———-I was unable to file my return in time.
You are kindly requested to waive the time limit and accord sanction to assess my income tax return (s) so that I am able to get the income tax refund of Rs………… excess paid income tax.
Further, I have been filing my income tax return regularly and the same could be verified from your records.
Name of the assessee.
Encl: (i) form-30 and
(ii) Relevant year(s) return photocopy
Form-30 which has to go along with the letter
The form-30 under rule 41 which has to be submitted to the Commissioner – the specimen is as under:-
(Claim for Refund)
I…………………………………….of ——————address———————— do hereby state that my total income computed in accordance with the provision of the Income Tax Act 1961, during the year ending on————being the previous year for the assessment year commencing on the 1 day of April…………….. amounted to Rs……………. and that the total income tax chargeable in respect of such total income is Rs………………. and that the total income tax paid or treated as paid under section 199 is Rs……………..
I therefore request for a refund of Rs………………………….
Signature of the assessee
I hereby declare that I was resident / non-resident but not ordinarily resident / non-resident during the previous year relevant to the assessment year to which claim relates and that what is stated in the application is correct.
Date: – Signature of the assessee