CBDT extends Deadline for Processing of Non-Scrutiny E-ITRs Filed with Refund Claims to April 30, 2024 [Read Order]

Top Stories CBDT extends Deadline for Processing of Non-Scrutiny E-ITRs Filed with Refund Claims to April 30, 2024 [Read Order] It is important to note that this relaxation does not apply to returns selected for scrutiny, returns with pending demands, or returns with unprocessed issues attributable to the assessee By Navasree A.M – On March 2, 2024 4:45 pm – 2 mins read The Central Board of Direct Taxes ( CBDT ) has taken a proactive step to address the challenges faced by taxpayers regarding the processing of electronically filed Income Tax Returns ( ITRs ) with refund claims for the Assessment Year 2021-22.

The board has extended the deadline for processing refunds in Non-Scrutiny cases to April 30, 2024. Acknowledging technical glitches and other unforeseen reasons beyond taxpayers’ control, the CBDT recognized that despite valid filings under Sections 139, 142, or 119 of the Income Tax Act, 1961, many returns couldn’t be processed within the stipulated time frame under subsection (1) of section 143. As a result, taxpayers were left without timely intimation regarding the status of their returns and were unable to claim legitimate refunds as per the provisions of the Income Tax Act, despite no fault on their part. In response to the genuine hardships faced by taxpayers, the CBDT, under the authority granted by section 119 of the Income Tax Act, has decided to relax the prescribed time-frame as per the second proviso to subsection (1) of section 143.

This relaxation applies to all electronically filed returns for AY 2021-22 with refund claims, for which the intimation under subsection (1) of section 143 has elapsed, subject to certain exceptions. The CBDT directed that these returns can now be processed with prior administrative approval of the Principal Chief Commissioner of Income Tax ( Pr.CCIT )/Chief Commissioner of Income Tax ( CCIT ) concerned. The intimation of such processing is to be sent to the concerned assessee by April 30, 2024. All subsequent effects under the Income Tax Act, including the issuance of refunds, will follow prescribed procedures. To ensure proper oversight, once administrative approval is granted, the progress of disposal of such cases will be monitored by the Pr.CIT/CIT concerned. However, it’s essential to note that this relaxation does not apply to: returns selected for scrutiny returns remaining unprocessed where demand is shown as payable in the return or is likely to arise after processing, or returns remaining unprocessed for any reason attributable to the assessee.

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