Revised guidelines for filling application for condonation of delay u/s 119(2)(b)
CBDT vide Circular No. 11 /2024 [File F. No. 312163/2023-0T] Dated: 01st October 2024 revised guidelines for processing application for Condonation of delay in filing refund claim and claim of carry forward of losses u/s 119(2)(b)
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, 1961 (the Act), the present Circular is being issued 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 containing comprehensive guidelines on the conditions for condonation and the procedures to be followed for deciding such matters.
1. Delegation of Powers
- (i) The Principal Commissioners of Income-tax/Commissioners of Income-tax (Pr. CsIT/CsIT) shall be vested with the powers of acceptance/rejection of such applications/claims if the amount of such claims is not more than ₹1 crore for any one assessment year.
- (ii) The Chief Commissioners of Income-tax (CCsIT) shall be vested with the powers of acceptance/rejection of such applications/claims if the amount of such claims exceeds ₹1 crore but is not more than ₹3 crores for any one assessment year.
- (iii) The Principal Chief Commissioners of Income-tax (Pr. CCsIT) shall be vested with the powers of acceptance/rejection of such applications/claims if the amount of such claims exceeds ₹3 crores for any one assessment year.
Here is the comparison of old guidelines issued in 2023 and revised guidelines 2024:
| Parameter | Old Circular No. 07/2023 | New Circular No. 11/2024 |
|---|---|---|
| Date Issued | 31st May 2023 | 01st October 2024 |
| Effective Date | Applications filed between 01-06-2023 to 30-09-2024 |
Applications filed on or after 01-10-2024 |
| Principal Commissioners/Commissioners | Up to ₹50 lakhs | Up to ₹1 crore |
| Chief Commissioners | ₹50 lakhs to ₹2 crores | ₹1 crore to ₹3 crores |
| Principal Chief Commissioners | ₹2 crores to ₹3 crores | Above ₹3 crores |
| CBDT | Above ₹3 crores | – |
| Time Limit for filling application | Not specified explicitly | Within 5 years from end of assessment year |
2. Additional Delegation
The Commissioner of Income-tax, CPC, Bengaluru, shall be vested with the powers for acceptance/rejection of petitions under section 119(2)(b) of the Act seeking condonation of delay in verifying the return of income by sending the ITR-V to the centralized processing Cell (CPC), Bengaluru, within the prescribed time limit.
3. Time Limit for Applications
No condonation application for claim of refund/loss shall be entertained beyond five years from the end of the assessment year for which such application/claim is made.
- The time limit for filing such application within five years from the end of the assessment year will be applicable for applications filed on or after 01.10.2024.
- A condonation application should be disposed of, as far as possible, within six months from the end of the month in which the application is received by the competent authority.
4. Conditions for Acceptance
Authorities must ensure the following when considering applications under Section 119(2)(b) of the Act:
- The assessee was prevented by reasonable cause from filing the return of income within the due date.
- The case demonstrates genuine hardship on merits.
- The authorities may direct the jurisdictional Assessing Officer to make necessary inquiries in accordance with the provisions of the Act to ensure that the application is dealt with on merits in accordance with the law.
5. Court Order Cases
In cases where a refund claim arises due to a Court order:
- The period for which any proceedings were pending before any Court of Law shall be ignored while calculating the said period of five years.
- The condonation of delay application must be filed within six months from the end of the month in which the Court order was issued or the end of the financial year, whichever is later.
6. Supplementary Refund Claims
Belated applications for supplementary claims of refund (claiming an additional amount of refund after completion of assessment for the same year) can be admitted for condonation if the following conditions are met:
- The income is not assessable in another person’s hands under any provisions of the Act.
- No interest will be admissible on belated refund claims.
- The refund arises as a result of:
- Excess tax deducted/collected at source.
- Excess advance tax payment.
- Excess payment of self-assessment tax.
7. Pending Applications
The delegation of powers under this Circular shall also cover all applications/claims for condonation of delay under Section 119(2)(b) of the Act that are pending as of the date of the issue of this Circular, i.e., 01.10.2024.
8. Board Oversight
The Board reserves the power to examine any grievance arising out of an order passed or not passed by the authorities mentioned above. Board can also issue suitable directions for proper implementation of this Circular.
