CBDT vide an Order dated 30.09.2021 issued under section 119 of the Income-tax Act, 1961 (“Act”) to extend the time limit to process the returns with refund claims under section 143(1) of the Act beyond the prescribed time limits in non-scrutiny cases for all validly filed returns up to AY 2017-18 to 30th November 2021.
The Order reads that the extension is given in order to mitigate the genuine hardship being faced by the taxpayers on the issue of non-processing of returns with refund claims for all validly filed returns upto AY 2017-18, the Board has issued this Order and extends the time frame to process the returns in such cases to 30.11.2021.
Earlier, vide an Order dated 05.07.2021, the time limit to process such returns with refund claims in non-scrutiny cases was extended till 30.09.2021.
According to section 143(1), where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, such return shall be processed of nine months from the end of the financial year in which the return is made. The time was was ‘one year’ prior to the amendment by Finance Act, 2021.
As per the Order dated 05.07.2021 and as applicable in this Order, the relaxation accorded above shall not be applicable to the following returns:
(a) returns selected in scrutiny;
(b) returns remain unprocessed, where either demand is shown as payable in the return or is likely to arise after processing it;
(c) returns remain unprocessed for any reason attributable to the assessee.
Read the full text of the CBDT Order dated 30.09.2021 on Extension of Time Limit to Process returns with refund under section 143(1)
F. No. 225/98/2020 - ITA-II
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
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Room No. 245A, ITA-II division
New Delhi, the 30th September 2021.
Order under Section 119 of the Income-tax Act,1961
Subject: Processing of returns with refund claims under section 143(1) of the Income-tax Act 1961 beyond the prescribed time limits in non-scrutiny cases - reg
Central Board of Direct Taxes (Board) vide its order under section 119 of the Income-tax Act, 1961 (Act) dated 05.07.2021 on the captioned subject relaxed the time frame prescribed in second proviso to sub-section (1) of Section 143 of the Act. It was directed that all validly filed returns up to Assessment Year 2017-18 with refund claims, which could not be processed under sub-section (1) of the Section 143 of the Act and which had become time-barred, should be processed by 30.09.2021 subject to the conditions/exceptions specified therein.
2. The matter has been re-considered by Board in view of pending taxpayer's grievances related to issue of refund. To mitigate the genuine hardship being faced by the taxpayers on this issue, Board, by virtue of its power under section 119 of the Act and in partial modification of its earlier order under section 119 of the Act dated 05.07.2021, supra, hereby further extends the time frame mentioned in the para no.3 of the said order from 30.09.2021 to 30.11.2021. All other contents of the said order u/s 119 of the Act dated 05.07.2021 will remain unchanged. 3. This may be brought to the notice of all for necessary compliance.
(Sourabh Jain)
Under Secretary to the Government of India
Download CBDT Order dated 30.09.2021 on Extension of Time Limit to Process returns with refund under section 143(1) in pdf format
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