CBDT Notification F.No.225/132/2023/ITA-II: Time Limit for Processing of Valid ITRs of AY 2018-19, 2019-20 & 2020-21 extended to 31.01.2024
The Central Board of Direct Taxes (CBDT) has issued direction to Income Tax Authorities vide its Notification No. F. No.225/132/2023/ITA-II dated 1 December 2023 and instructs to expedite the processing of electronically filed valid income tax returns with refund claims for Assessment Years 2018-19, 2019-20, and 2020-21 and sending intimation to taxpayers by 31 January 2024.
Background:
The Central Board of Direct Taxes acknowledges that various returns filed under sections 139, 142(1), or 119 of the Income Tax Act, 1961, for AY 2018-19, 2019-20, and 2020-21 faced delays in processing. This has resulted in taxpayers being unable to receive their rightful refunds within the stipulated time prescribed under section 143(1) of the Act. The CBDT emphasizes that the delay is not the fault of the taxpayers.
CBDT’s Resolution:
To address the grievances of affected taxpayers, the CBDT has utilized its powers under section 119 of the Act. Prior instructions/orders under section 119 had already extended the time frame until 31 January 2024 for processing returns up to AY 2017-18. In the latest order dated 16th October 2023, the CBDT had relaxed the time-frame, allowing the processing of returns for AYs 2017-18.
Key Instructions:
The CBDT hereby directs that all electronically filed returns with refund claims, for which the date of sending intimation under section 143(1) has lapsed, can now be processed. This relaxation is subject to administrative approval from Pr. CCIT/CCIT concerned. The intimation of processing must be sent to the assessee by 31 January 2024.
Exceptions:
The relaxation does not apply to returns selected for scrutiny, unprocessed returns with payable demands, or returns remaining unprocessed for reasons attributable to the assessee.
Procedures:
Administrative approval by Pr. CCIT/CCIT is a prerequisite, and subsequent procedural steps, including issuing refunds, will follow standard protocols. Adequate safeguards are in place, with Pr. CIT/CIT monitoring the progress of case disposal.
Conclusion:
This CBDT directive aims to alleviate genuine hardships faced by taxpayers awaiting refunds for AY 2018-19, 2019-20, and 2020-21. By extending the processing deadline and streamlining administrative procedures, the CBDT demonstrates its commitment to resolving issues promptly and ensuring a smoother tax return process for affected genuine taxpayers.
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