CBDT ALLOWS PROCESSING OF ITRS FILED ELECTRONICALLY FOR REFUND CLAIM BEYOND DEADLINE
In a move aimed at addressing the genuine hardships faced by taxpayers, the Central Board of Direct Taxes (CBDT) has extended relief by allowing the processing of income tax returns (ITRs) filed electronically for refund claims beyond the prescribed deadline in non-scrutiny cases for the assessment year (AY) 2021-22.
The decision comes in response to various technical issues and other factors not attributable to the taxpayers, which have hindered the processing of returns under section 143(1) of the Income-tax Act, 1961. Despite valid filings under sections 139, 142, or 119 of the Act, certain returns could not be processed within the stipulated timeframe, thereby depriving taxpayers of their legitimate refunds.
Acknowledging the plight of taxpayers and the need to alleviate their concerns, the CBDT, empowered under section 119 of the Act, has relaxed the time-frame prescribed in the second proviso to sub-section (1) of section 143. This relaxation enables the processing of all electronically filed returns for AY 2021-22 with refund claims, for which the deadline for sending intimation under sub-section (1) of section 143 has lapsed.
However, the relaxation does not extend to returns selected for scrutiny, those showing payable demand or likely to arise post-processing, and returns remaining unprocessed due to reasons attributable to the assesse.
Under the new directive, taxpayers awaiting refunds for the specified period will receive intimation of processing by April 30, 2024. The issuance of refunds and other ensuing consequences under the Act will occur in accordance with the established guidelines.
To ensure effective implementation, the Principal Chief Commissioner of Income Tax (Pr. CCIT)/Chief Commissioner of Income Tax (CCIT) will provide prior administrative approval for processing, with subsequent authorization from the Director General of Income Tax (Systems) to the Assessing Officer on an individual basis.
The CBDT’s decision reflects a proactive approach towards addressing taxpayer grievances and upholding fairness in tax administration. By extending relief in processing ITRs beyond the deadline for refund claims in non-scrutiny cases, the board underscores its commitment to facilitating a smooth and equitable tax regime.
Taxpayers are encouraged to adhere to the guidelines and cooperate with tax authorities to ensure seamless processing of returns and timely issuance of refunds. The announcement by the CBDT marks a significant step towards easing the burden on taxpayers and fostering greater trust and compliance within the taxation system. As the deadline approaches, taxpayers can expect tangible relief and resolution to their refund-related concerns.
