Processing of ITRs filed during FY 2018-19 u/s 139, in response to  notice u/s 142(1) or  u/s 119(2)(b)

Processing of ITRS filed during FY 2018-19 u/s 139, in response to notice u/s 142(1) or  u/s 119(2)(b) getting time barred 

ITBA-ITR Processing Instruction No- 10

DIRECTORATE OF INCOME TAX (SYSTEM)
ARA Center, Ground, Floor E-2,  Jhandewalan Extension
New Delhi – 110055

F.No. Pr. DGIT(S)/ITBA/ITR Processing/112/16-17/

Dated: 18.02.2020

To
All Principal Chief Commissioners of Income-tax/ CCsIT All Principal Director Generals of Income Tax/DGsIT
All Principal Commissioners of lncome-tax/CsIT/CsIT(Admin & TPS) All Principal Directors of Income Tax/DsIT

Subject:  Processing of Returns filed during Financial Year 2018-19 u/s 139, in response to  notice u/s 142(1) or  u/s 119(2)(b) of the I. T. Act, getting time barred for processing u/s 143(1) of the I.T. Act, on 31-03-2020-Regarding.

Sir/Madam ,

This is in reference to the subject mentioned above . Assessing Officers shall take following steps to clear the pendency of processing of Paper Returns or E-returns transferred by CPC-ITR due to verification of relief claimed u/s 90/90A or 91 of the I. T. Act or otherwise :

1. Valid Paper Returns: Assessing Officers must complete the data entry of all paper returns filed by eligible taxpayers and push the data for processing by CPC-ITR. For paper returns filed by non-eligible taxpayers e. , Non-Super Senior Citizen claiming  refund, these are to be invalidated by AO instead of modifying the values in Data  entry forms,  as  ultimately these  returns will be marked as defective  u/s 139(9) of the I. T. Act by CPC-ITR while processing the same . Therefore, AO must ensure accuracy in digitisation of paper ITRs in ITBA.

2. E-returns for AY 2017-18 or 2018-19 transferred  by  CPC: Assessing  Officers need to verify the e-returns transferred by CPC-ITR for verification of relief  u/s 90/90A or 91 of the I. T. Act upon transfer of rights by CPC-ITR. In such cases, after taking suitable action , AO needs to submit these returns to CPC-ITR for processing.

3. Return filed in response to Notice u/s 142(1) of the T.Act : It is seen that more than 2 lakhs of returns are filed by taxpayers in e-filing portal. These returns are transferred by CPC- ITR to AO for the purpose of validating the returns filed in response to notice u/s 142(1) of the I.T.Act. For the purpose of validating and to avoid mistake by AO due to overlooking of facts of returns , following field is added in Return Receipt Register -7 Basic Return Details Screen:

– Latest compliance date for filing return u/s 142(1) of the I.T.Act allowed by AO: This field will be mandatory in addition to Notice Date where return is filed u/s 142(1) of the I.T.Act.

• If filing date of return u/s 142(1) of the I.T.Act is greater than the Latest Compliance Date for filing return u/s 142(1) of the I.T.Act allowed by AO then such returns will be marked as invalid on saving the return data.
• If filing date of return u/s 142(1) of the I.T.Act is less than or equal to the Latest Compliance Date for filing return u/s 142(1) of the I.T.Act allowed by AO then such returns w ill be treated as valid and can be submitted by AO for processing u/s 143(1) of the I.T.Act.

Note:- All returns filed u/s 142(1) of the I.T.Act, will be marked as invalid by the system , if AO does not take any action on or before 22-02-2020 . However, AO may be able to validate such returns again after entering the mandatory details as mentioned above.

4. Returns filed u/s 119(2)(b) of the T.Act, during financial year 2018-19: The Assessing Officer should enter the condonation details for validating such returns prior to be submitting the same to the CPC-ITR for processing.

Note:- All returns filed u/s 119(2)(b) of the IT Act, will be marked as invalid by the system , if AO does not abcaus.in take any action on or before 22-02-2020 . However, AO may be able to validate such returns again after entering the condonation order details.

5. All Assessing Officers must note that the returns pushed for processing u/s 143(1) of the IT Act , will be subject to the following :

• Prima Facie Adjustment for Paper Returns : AO needs to issue notice in this regard and also modify the data entered to enable processing by CPC-ITR
• Defective Paper Returns: Paper returns marked as defective by  CPC-ITR needs to be either corrected for any data entry mistake or are to be marked as invalid. The AO may issue notice u/s 139(9) for this purpose.
• Fore-returns the PFA notices or defective notices will be issued by CPC-ITR and taxpayers are required to respond or file return u/s 139(9) within 15 days from the date of service of notice. Once new e-return is filed then same will be transferred back to AO and he needs to re-submit the same to CPC-ITR.
• The  Assessing  Officer  will  be  required  to  approve  the  refund  or Demand determined by CPC-ITR in order to complete the processing and release of refund (after arrear demand adjustment u/s 245) by CPC-ITR.

Refunds cases will be subject to Range approval or subject to 241A compliance , therefore concerned authorities, AO, Range Head and PCIT must complete their approval pendency by 28-02-2020.

6. Users are advised to contact helpdesk in case of any issues in respect of ITBA.

a. URL of helpdesk- http://itbahelpdesk .net
b. Help desk number- 0120-2811200  (new)
c. Email ID- helpdesk@incometax.gov .in
d. Help desk Timings- 30 A.M . – 7.30 P.M. (Monday to Friday)

7. This issues with prior approval of the Pr. DGIT(Systems) , Delhi

Yours  faithfully ,

(Ashim Kumar  Modi)
Commissioner of Income Tax (ITBA)
Directorate of Income Tax (Systems) , Delhi

Download Instruction Click Here >>

• Form 26 to replace Form 3CD of tax audit report by a CA from Tax Year 2026-27
• When no addition is made on the basis of reasons recorded, reopening is bad in law
• No separate compensation for loss of love and affection under MV Act – SC
• Trust accredited by National Open School eligible for registration u/s 12AB & u/s 80G
• Delay in furnishing Form 10B – Covid Period to be excluded as per decision of Supreme Court