CBDT extends Time Limit for Processing of ITRs filed with refund claims up to AY 2017-18 till 31-12-2019 [Read Order]

The Central Board of Direct Taxes ( CBDT ) has extended time limit for processing of Income Tax Returns ( ITRs ) filed with refund claims up to AY 2017-18 till 31^st December 2019.

In a Circular issued by the CBDT has said that, by virtue of its powers under section 119 of the Act, hereby relaxes the time-frame prescribed in second proviso to sub-section (1) of section 143 and directs that all validly filed returns up to assessment year 2017-18 with refund claims, which could not be processed under sub-section (1) of section 143 of the Act and have become time-barred, subject to the exceptions mentioned in para below, can be processed now with prior administrative approval of Pr.CCIT/CCIT concerned and intimation of such processing under sub-section (1) of section 143 of the Act can be sent to the assessee concerned by 31.12.2019.

All subsequent effects under the Act including issue of refund shall also follow as per the prescribed procedures. To ensure adequate safeguards, it has been decided that once administrative approval is accorded by the Pr.CCIT/CCIT, the Pr.CIT/CIT concerned would make a reference to the Pr.DGIT(Systems) to provide necessary enablement to the Assessing officer on a case to case basis.

The CBDT also said that, The relaxation accorded above shall not be applicable to the following returns :

(a) returns filed for any assessment year prior to assessment year 2017-18, which were under scrutiny and were not processed in view of provisions of sub-section (1D) of section 143 of the Act; (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.