Refund u/s 239(2) ,243(1)(b). - Income Tax - 215/CBDT

INSTRUCTION NO. 215/CBDT Dated: September 11, 1970 Section(s) Referred: 239(2) ,243(1)(b) Statute: Income - Tax Act, 1961 Please refer to Board's Instruction No.143(F.No.5/107/69-ITAII) dated 27-1-1970 wherein it was stated that the claim for refund filed u/s.239(2) should be disposed of within the time limit prescribed u/s.153(1)(a)/(c). This should not be taken to mean that where the return or revised return is filed u/s.139(4) or 139(5), the ITO should complete the refund proceedings towards the end of the time limit period of one year, thereby necessitating payment of interest for a period of 6 months. Section 243(1)(b) of the I.T.Act provides that if the ITO does not grant the refund within six months from the date on which the claim for refund is made, the Central Government should pay simple interest at nine percent per annum. The Board would, therefore like to clarify that refund cases should be completed expeditiously within 6 months in order to avoid payment of interest u/s.243(1)(b) of the I.T.Act.