CBDT extends time limit for processing ITR's filed with refund claims upto AY 2017 - 2018 extended to 31/12/2019

Due to technical issues or for other reasons not attributable to assessee’s concerned, several returns for various assessment years upto AY 2017 – 2018, which are filed validly under s. 139 or 142 of the Income Tax Act (hereinafter referred to as ‘the Act’) could not be processed under s. 143(1) of the Income Tax Act. Consequently, intimation regarding processing of such returns could not be sent within a period of one financial year in which such returns were filed as prescribed in the second proviso to s. 143(1) of the Act. This has led to a situation where the taxpayer is unable to get his legitimate refund in accordance with provisions of the Act, although, the delay is not attributable to him.

To mitigate the hardship faced by the taxpayers, the CBDT by virtue of it’s powers, has held that prior to administrative approval of Pr. CCIT/CCIT concerned, an intimation of processing under s. 143(1) can be sent to the concerned assesse upto 31st December 2019. All subsequent effects under the Act including issue of refund shall also follow as per the prescribed procedures. However, this relaxation is not applicable to the following situations :

-       Returns filed for any AY prior to AY 2017 – 2018, which were under scrutiny and were not processed in view of provisions of s. 143(1D) of the Act,

-       Returns remain unprocessed, where either demand is shown as payable in the return or is likely to arise after processing it,

-       Returns may remain unprocessed for any reason attributable to the assesse.


Complete notification attached for reference.