CBDT relaxes time limit for processing of returns filed after condonation of delay

CBDT relaxes time limit for processing u/s 143(1) of returns filed after condonation of delay u/s 119(2)(b)

Relaxation of time limit for processing under section 143(1) of valid returns of income filed electronically pursuant to order u/s 119(2)(b) passed by Competent Authority

CBDT has issued Circular No. 07/2025 dated 25/06/2025 stating that CBDT has noted that returns of income filed in pursuance of order u/s 119(2)(b) of the Income-tax Act, 1961 condoning the delay in filing such returns, could not be processed within the prescribed time limit under second proviso to section 143(1) of the Act due to technical reasons.

Such orders u/s 119(2)(b) of the Act condoning delay in filing of return have been passed by Competent Authority as specified in CBDT’s Circular No. 09/2015, Circular No. 07 /2023 and latest Circular No. 11/2024 dated 01.10.2024.

The assessee’s have also filed grievances regarding non-receipt of refund due to non-processing of these returns in some cases.

The CBDT has considered the matter and has decided to relax the time-frame prescribed in second proviso to sub-section (1) of section 143 of the Act in exercise of its powers under section 119 of the Act, and directed that valid returns of income filed electronically on or before 31.03.2024 pursuant to condonation of delay u/s 119(2)(b) of the Act by the competent authority, for which date of sending intimation under sub-section (1) of section 143 of the Act has lapsed, shall be processed now.

Accordingly, intimation under sub-section (1) of section 143 of the Act in respect of processing of such ITRs shall be sent to the assessees concerned by 31.03.2026.

However, it has been stated that the above relaxation shall not be applicable to cases where any proceeding for assessment (u/s 143(3)/144/144B/153A/153C) or reassessment (u/s 147 /148) or re-computation or revision of income has been completed for the relevant assessment year subsequent to filing of such returns of income.

All subsequent effects under the Act, including issue of refund along with interest as applicable, shall also follow in these cases.

In those cases where PAN-Aadhaar linkage is not found, refund of any amount of tax or part thereof, due shall not be made as laid down in Circular No. 03/2023 dated 28.03.2023.The Director General of Income-tax (Systems), Bengluuru shall specify the procedures for processing of such returns filed u/s 119(2)(b) of the Act to ensure that intimation under section 143(1) of the Act shall be sent to assessees on or before 31.03.2026.

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