Condonation of delay in filing return of income u/s 119(2)(b) of Income Tax Act
BOARD had received representations regarding Condonation of delay in filing return of income u/s 119(2)(b) of the Income Tax Act, 1961 in the case of applicants who have made investment in the 8% Savings (Taxable) Bonds, 2003 issued by the Government of India and opted for scheme of cumulative interest
The Board has decided that the time limit prescribed in clause 4 of CBDT Instruction No. 13/2006 dated 22.12.2006 for entertaining application u/s 119(2)(b) of the Act shall not apply if
i) the applicant has made investment in 8% Savings (Taxable) Bonds, 2003 issued by the Government of India opting for cumulative interest on maturity but has accounted interest earned on mercantile basis, and
ii) the intermediary bank at the time of maturity has made deduction of tax at source (TDS) on the entire amount of interest paid without apportioning the accrued interest/TDS for various financial year/s involved.
Other conditions prescribed in CBDT Instruction No. 13/2006 shall continue to apply.
The conditions prescribed in Instruction No. 13/2006 are:
No fresh application for claim of refund will be entertained beyond six years from the end of the assessment year for which the application/claim is made.
The powers of acceptance/rejection within the monetary limits delegated to the CCsIT/CsIT would be subject to the following conditions:-
++ The refund has arisen as a result of excess tax deducted/ collected at source and payments of advance tax under the provisions of Chapter XVIIB, XVIIBB and XVII-C respectively and the amount of refund does not exceed Rs. 50,00,000 in respect of CCsIT and Rs. 10,00,000 in respect of CsIT for any one assessment year
++ The income of the assessee is not assessable in the hands of any other person under any of the provisions of the Act; and
++ No interest will be admissible on the belated refund claims.
At the time of considering the case under the provisions of section 119(2)(b), it should be ensured that the income declared and refund claimed are correct and genuine and also that the case is of genuine hardship on merits.
The CCsIT/CsIT are empowered to direct the Assessing Officer to make necessary enquiries or scrutinize the case in accordance with provisions of the Income-tax Act to ascertain the correctness of the claim.
CBDT Instruction No. 2/2012-Cus., Dated: February 22, 2012