CBDT Extends Deadline for Processing E-Filed ITRs with Refund Claims in Non-Scrutiny Cases until April 31, 2024

The Central Board of Direct Taxes ( CBDT ) has recently issued an order, dated January 31, 2024, addressing the processing of Income Tax Returns ( ITRs) that were validly filed electronically with refund claims under section 143(1) of the Income-tax Act, 1961. The order extends the time limits prescribed for such processing in non-scrutiny cases until 31st April 2024. In October 2023 and December 2023, the CBDT had issued orders relaxing the time limits specified in the second proviso to sub-section (1) of Section 143 of the Act. These orders directed the processing of all returns of income validly filed electronically up to Assessment Year 2020-21, with refund claims that could not be processed under sub-section (1) of Section 143 and had become time-barred.

The deadline for processing was initially set for January 31, 2024, with specific conditions and exceptions. Considering the ongoing grievances related to the issue of refunds and aiming to alleviate genuine hardships faced by taxpayers, the CBDT, under its power vested in section 119 of the Act, has partially modified its earlier orders. The revised order now extends the processing deadline mentioned in the previous directives until April 30, 2024, exclusively for returns of income validly filed electronically up to Assessment Year 2020-21. It’s important to note that all other aspects of the earlier orders under section 119 of the Act remain unchanged.

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