Earlier instructions on belated refund claims - Income Tax - 446/1985

Earlier instructions on belated refund claims Circular No.446 Dated 31/12/1985 Clarification 1 1. Attention is invited to Board's order under section 119(2)( b ) of the Income-tax Act [F.No. 225/201/87-IT(A-II)], dated 17-8-1988 whereby the Board, in exercise of the powers conferred by clause ( b ) of sub-section (2) of section 119 of the Income-tax Act, 1961, have authorised the Income-tax Officer to admit belated refund claims under section 237 of the Income-tax Act, 1961 arising as a result of excess advance tax paid. 2. With a view to avoid genuine hardship to the taxpayers, Assessing Officers have now been authorised to admit belated refund claims in respect of amounts up to Rs. 10,000 provided the conditions laid down in the said order are fulfilled. These conditions are as follows :— ( i ) the refund arising as a result of excess advance tax payment in respect of assessment year under the provisions of section 208 of the Income-tax Act, does not exceed Rs. 10,000; ( ii ) the returned income is not a loss, where the assessee claims the benefit of carry forward of the loss; ( iii ) the refund claimed is not supplementary in nature i.e. , a claim for additional amount of refund after the completion of the original assessment for the same assessment year; and ( iv ) the income of the assessee is not assessable in the hands of any other person under any provisions of the Act. 3. This order will be effective from 1-8-1988. Circular : No. 521, dated 17-8-1988 . Clarification 2 1. Attention is invited to the Board's Order under section 119(2)( b ) [F. No. 225/201/87-IT(A-II)], dated 5-2-1988 whereby the Board, in exercise of the powers conferred by clause ( b ) of sub-section (2) of section 119, have raised the monetary limit of cases in which the ITO is authorised to admit belated refund claims under section 237. 2. With a view to avoid hardship to the taxpayers, the Income-tax Officers have now been authorised to admit belated refund claims in respect of amounts up to Rs. 10,000 provided the conditions laid down in the said order are fulfilled. These conditions are as follows : ( i ) the refund arising as a result of tax deducted at source in respect of assessment year under the provisions of sections 192, 193, 194, 194A, 194B, 194C, 194D and 195 does not exceed Rs. 10,000; ( ii ) the returned income is not a loss where the assessee claims the benefit of carry forward of the loss; ( iii ) the refund claimed is not supplementary in nature, i.e., a claim for additional amount of refund after the completion of the original assessment for the same assessment year; and ( iv ) the income of assessee is not assessable in the hands of any other person under any provisions of the Act. 3. This order will be effective from 10-2-1988. Circular : No. 503 [F. No. 203/201/87-IT (A-II)], dated 6-2-1988 . Judicial analysis Explained in - The above circular was relied on in Balram Kapoor v. ITO [1990] 38 TTJ (Nag.) 295, with the following observations : "In the present case, the refund arises on a proper assessment of total income and proper application of the provisions of the Act which require that the tax deducted at source should be adjusted against the finally determined tax liability. This is precisely what the Board had in mind when it issued the Circular dated 6th February, 1988. The conditions prescribed by the Board contained in para 2 of the said circular are as under : ** ** ** In the present case the refund arises as a result of tax deducted at source under section 194C of the Act. Further the refund does not exceed Rs. 10,000. Also the income returned is not a loss and the assessee is not claiming the benefit of carry forward of the loss. We also find that the refund claimed is not supplementary in nature, that is a claim for additional amount of refund after the completion of the original assessment of the same assessment year. Therefore, in our opinion, all the conditions prescribed in this circular are satisfied in the assessee's case and although the circular is made effective from 10th February, 1988, we see no reason why this circular should not be taken into consideration for deciding the validity of the arguments advanced in the present case." (pp. 300-301). Clarification 3 1. Attention is invited to Board's order under section 119(2)( b ) [F. No. 225/105/83-IT (A-II)], dated 24-3-1984 [ Annex ] wherein the Board, in exercise of the powers conferred by clause ( b ) of sub-section (2) of section 119, have condoned the delay in filing returns of income in cases where an otherwise valid refund claim under section 237 is filed by the assessee after the expiry of the statutory time limit under section 239 and the Income-tax Officer, having jurisdiction over the case, has been empowered to admit the said claim and dispose of the same merits and in accordance with law provided the following conditions are satisfied : ( i ) the refund arising as a result of tax deducted at source in respect of the assessment year under the provisions of sections 192, 193, 194, 194A, 194B, 194C, 194D and 195 does not exceed Rs. 1,000; ( ii ) the refund income is not a loss where the assessee claims the benefit of carry forward of the loss; ( iii ) the refund claimed is not supplementary in nature, e.g. , a claim for additional amount of refund after the completion of the original assessment for the same assessment year; and ( iv ) the income of the assessee if not assessable in the hands of any other person under any provisions of the Act. 2. This order has been made effective from April 2, 1984. 3. You are requested to bring to the contents of the aforesaid order, which has already been communicated to you vide the Board's endorsement of even number dated 24-3-1984 to the notice of all the officers working under you. It is also requested that this authorisation may be given wide publicity. Circular : No. 379 [F. No. 225/105/83-IT (A-II)], dated 10-4-1984 . Annex - Order, Dated 24-3-1984 Referred to In Clarification In exercise of the powers conferred by clause ( b ) of sub-section (2) of section 119 of the Income-tax Act, 1961, the Central Board of Direct Taxes hereby order that, in all cases an otherwise valid refund claim under section 237 of the Income-tax Act, 1961 is filed by an assessee after the expiry of the statutory time limit as prescribed under section 239 of the Act, the Income-tax Officer, having jurisdiction over the case, may admit the said refund claim and dispose of the same on merits and in accordance with law provided the following conditions are satisfied : ( i ) the refund arising as a result of tax deducted at source in respect of the assessment year under the provisions of sections 192, 193, 194, 194A, 194B, 194D and 195 does not exceed Rs. 1,000; ( ii ) the returned income is not a loss where the assessee claims the benefit of carry forward of the loss; ( iii ) the refund claimed is not supplementary in nature, i.e. , a claim for additional amount of refund after the completion of the original assessment for the same assessment year; and ( iv ) the income of the assessee is not assessable in the hands of any other person under any provisions of the Act. 2. This order will be effective from April 2, 1984 Clarification 4 1. Attention is invited to Board's Order F. No. 225/105/83-IT (A-II), dated 24-3-1984 whereby the Board, in exercise of the powers conferred by clause ( b ) of sub-section (2) of section 119 authorised the Income-tax Officers to admit belated refund claims under section 237 in respect of amount up to Rs. 1,000 in cases where refund arose as a result of tax deducted at source under sections 192 to 194, section 194A, and section 195 provided the conditions laid down in the said order were fulfilled. This order was effective from 2-4-1984. The order, however, did not cover cases where refunds arose as a result of tax deducted at source under section 194C, i.e. , the cases of contractors and sub-contractors. 2. With a view to avoiding hardship to the taxpayers, the Board vide their Order F. No. 225/105/83-IT (A-II), dated 31-12-1985 have further authorised the ITOs to admit a belated application/claim for refund in cases where refund arises as a result of tax deducted at source under section 194C provided the following conditions are satisfied : ( i ) the amount of refund arising as a result of tax deducted at source under the provisions of section 194C, in respect of the assessment year, does not exceed Rs. 1,000; ( ii ) the returned income is not a loss where the assessee claims benefit of carry forward and set off of loss; ( iii ) the refund claim is not supplementary in nature, e.g. , a claim for additional amount of refund after the completion of the original assessment for the same assessment year; and ( iv ) the income of the assessee is not assessable in the hands of any other person under any provisions of the Act. 3. This order will be effective from 1-1-1986. Circular : No. 446 [F. No. 225/105/83-IT (A-II)], dated 31-12-1985 .