CBDT extends time limit till 30.11.2021 to process and issue refund for Income tax return not processed relating to AY 2017-18 and before

Subject: Order under Section 119 of the Income-tax Act,1961 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.

The Board had earlier extended such time limit upto 30.09.2021.

To read full notification by Income tax department on such extension CLICK HERE.

Thus, Income tax department has further extended the time limit to process income tax return and issue refund from 30.09.2021 to 30.11.2021. Is it really done to mitigate hardship faced by Assessee or is it because the systems were not able to process the Income tax returns filed and thus to help taxman this step has been taken?

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