Deduction under sections 80U and 80DD of the Income-tax Act, 1961 - Clarification regarding - Income Tax - 670/1993

Deduction under sections 80U and 80DD of the Income-tax Act, 1961 - Clarification regarding Circular No. 670 Dated 26/10/1993 To All Chief Commissioners of Income-tax and All Directors-General of Income-tax. Sir, I am directed to forward herewith the order contained in F. No. 225/208/93-ITA.II, dated 12th October, 1993*, passed by the Central Board of Direct Taxes in exercise of the powers conferred on it under section 119(2)(b) of the Income-tax Act, 1961. By virtue of this order the Assessing Officers can admit belated refund claims under section 237 of the Income-tax Act in cases where refunds may arise as a result of tax deducted/collected at source and advance tax payments where the amount of such refund does not exceed Rs. 1 lakh for any assessment year. 2. Board have also decided that in such cases :_ (i) where the refund does not exceed Rs. 10,000 for any assessment year the Assessing Officer shall obtain the prior approval of the Commissioner of Income-tax before entertaining a belated refund claim ; and (ii) where the refund exceeds Rs. 10,000 but does not exceed Rs. 1,00,000 for any assessment year the Assessing Officer shall obtain the prior approval of the Chief Commissioner of Income-tax or Director-General of Income-tax before entertaining a belated refund claim. 3. The Chief Commissioner/Director-General/Commissioner of Income-tax, as the case may be, shall ensure that the conditions laid down under the Board's order under section 119(2)(b) referred to above are fulfilled. 4. Where the Chief Commissioner of Income-tax/Director-General of Income-tax/Commissioner of Income-tax/Director of Income-tax finds that the four conditions laid down in the order under section 119(2)(b) dated 12th October, 1993, are satisfied but still it is not a case of "genuine hardship", he should refer the belated refund application to the Board for final decision. 5. This order is effective from 1st November, 1993, and will apply to all claims of refund pending as on that date and also in respect of all refund claims filed on or after that date. 6. The instructions contained in this circular modify the earlier instructions on the subject and may please be brought to the notice of the officers working under your charge. Yours faithfully, (Sd.) G. Muthuramakrishnan, Director-ITA.II Central Board of Direct Taxes. In continuation of earlier orders dated 5th February, 1988, and 17th August, 1988, issued from F. No. 225/201/87-ITA.II, the Central Board of Direct Taxes, in exercise of the powers conferred by clause (b) of sub-section (2) of section 119 of the Income-tax Act, 1961, hereby orders that, in all cases where 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 prescribed under section 239 of the Act, the Assessing 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 arises as a result of excess tax deducted at source/ collected at source and payments of advance tax under the provisions of Chapters XVII-B, XVII-BB and XVII-C respectively and the amount of refund does not exceed Rs. 1 lakh for any assessment year ; (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., 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 of the provisions of the Act. This order will be effective from 1st November, 1993. (Sd.) N.R. Sivaswamy, Member (IT), Central Board of Direct Taxes.