Relaxation u/s 119(2)(c) can be claimed only within the prescribed time period
It is a common thing that taxpayers’ delay in filing their income tax refund claims for. Likewise filing of tax by some of the taxpayers might be delayed because of genuine circumstances that affect the carrying forward or the set off of the loss.
Central Board of Direct Taxes has issued a circular recently where the procedure has been provided for condoning that means forgiving or pardoning such delays and ways to get them processed. Here is the gist of the circular that surpasses all previous circulars with this regard.
Competent Authority to accept/reject the applications
| Cases where the claims do not exceed INR 10 lakhs | The Principal Commissioners of Income tax/ Commissioners of Income-tax
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| Cases where the claims are more than INR 10 lakhs but does not exceed INR 50 lakhs | The Principal Chief Commissioners of tax/Chief Commissioners of Income-tax |
| Cases where the claims exceed INR 50 lakhs | CBDT |
Central Board of Direct Taxes has the authority for examining any of the grievances that arise out of any order which has been passed or has not been passed by the above-mentioned authorities and issues appropriate directions for appropriate implementation of the Circular. Though, no appeal or review against such orders of the above-mentioned authorities would be amused by the Board.
Time limits for accepting the claims
In the case of any claim for refund or in the case of any application is made for permitting any loss it could not be condoned after six years from the end of the respected assessment year in which the said application/claim was made. The time limit of six years is valid to all the above three above mentioned authorities.
In case the refund of the claim is because of a court order, the period for which the claim stand pending because of the court proceedings would be ignored for the purpose of calculating this period of six years. The said period is overlooked only where the application for the condonation is filled within six months end of financial year or from the end of the month in which court had ordered – whichever is later.
The said limit of 6 years is valid to all the above-mentioned authorities having the authority for condoning the delay according to the above stated monetary limits, including the Board.
An application for condonation must be disposed of in 6 months’ time frame from the end of the month within which application has been received by such competent authority.
Other conditions
Any of the authority mentioned above has the authority for directing the jurisdictional A.O for scrutinizing the case for ensuring correctness of the claim. The authority would content itself whether the claim is right and whether there is an honest hardship because of which it has not been filed timely.
