Provisions u/s 119(2)(b) ,239(2),Income Tax Act. - Income Tax - 1058/CBDT

INSTRUCTION NO. 1058/CBDT Dated : May 13, 1977 Section(s) Referred: 119(2)(b) ,239(2) Statute: Income - Tax Act, 1961 A number of instances have come to notice where the taxpayers have failed to obtain the refund due to them under either of the following circumstances:- (i) The claim for refund is filed in time as provided under section 239(2) but is not desposed of by the Income tax Officer within the time prescribed under section 153 and the action gets barred by limitation. (ii) The claim itself is filed beyond the time limit prescribed under section 239(2). 2. In respect of the cases mentioned in para 1(i) above, since there is no default on the part of the assessee as the application for refund was made in time, he should not be made to lose the refund on account of the Departmental delay. The Board have been advised that in cases where an otherwise valid claim for refund cannot be allowed in view of the delay on the part of the Income-tax Officer in completing the assessment in time, it will be upto the Central Government to grant the refund in order to do justice to the tax-payers. The Board have, therefore, decided that the necessary authorisation from the Central Government should be taken in such cases for waiving the time limit provided under section 153 for completion of assessments. All such cases should be referred to the Board as and when they come to the notice of the Commissioners. The Commissioner of Income tax should also fix responsibility on the concerned officials for not completing the assessments in time. 3. As regards para 1(i) above, the provisions of section 119(2)(b) can be invoked where the Board considers it desirable or expedient so to do for avoiding genuine hardship. In deserving cases, the Board may condone the delay and authorise the Income tax Officer to complete the assessment beyond time to grant the refund. The Board will have to decide in every case referred to it, whether it is a fit case for invoking the provisions of section 119(2)(b).