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    Condonation Of Delay In Filing Refund Claim And Claim Of Carry Forward Of Losses

    No Condonation for claim of refund or loss shall be entertained beyond six years from the end of the assessment year for which application or claim is made. The limit of six years is uniform for all authorities considering the application or claim.

    In case where refund claim has arisen consequent to a Court Order, the period for which any such proceedings were pending before any Court of Law shall be ignored while calculating the said period of six years, provided such Condonation application is filed within six months from the end of the month in which such Court Order was issued or the end of financial year, whichever is later.

    A belated application for claim of additional amount of refund after completion of assessment for the same year (Supplementary claim of refund) can be admitted subject to conditions.

    In the case of an applicant who has made investment in 8% (Taxable) Bonds, 2003 issued by the Government of India opting for scheme of cumulative interest on maturity but accounted interest earned on accrual basis and the intermediary bank at the time of maturity has deducted tax at source on the entire amount of interest paid without apportioning the accrued interest and TDS over financial years involved, the time limit of six years for making such refund claim will not apply.

    Conditions:

    The Powers of acceptance or rejection of application for Condonation subject to the following conditions:

    • It shall be ensured that the income or loss declared and or refund claimed is correct and genuine as well as it was due to genuine hardship on merits; 
    • The Authority dealing with (Pr CCIT/CCIT/Pr.CIT/CIT) dealing with the case shall be empowered to direct the jurisdictional assessing officer to make necessary inquiries or scrutinize the case in accordance with the provisions of the Act to ascertain the correctness of the claim.

    Further Conditions:

    • The Income of the assessee is not assessable in the hands of any other person under any other provisions of the Act;
    • No interest will be admissible on belated claim of refund; 
    • The refund has arisen as a result of excess of tax deducted / collected at source and or excess advance tax payment and or excess payment of self-assessment tax as per the provisions of the Act.

    Monetary Limits and Authority for Condonation of delay:

    Monetary Limit

    Authority for considering

    Condonation Application/Claim

    Up to Rs. 10 Lakhs

    ( For One Assessment Year)

    Principal Commissioner / Commissioner

    of Income Tax (Pr.CIT/CIT)

    More than Rs. 10 Lakhs but not more than

    Rs. 50 Lakhs ( For One Assessment Year)

    Principal Chief Commissioner /

    Chief Commissioner of Income Tax

    (Pr.CCIT/CCIT)

    More than Rs. 50 Lakhs

    CBDT

    Time Limit for Disposal of application:

    Application for Condonation should be disposed of within in six months from the end of the month in which the application is received by the competent authority as far possible.

    Note:

    This circular is equally applicable to applications or claims for Condonation of delay pending on the date of issue of this circular (09/06/2015).

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