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TMI BlogInstructions to subordinate authorities - Authorisation regarding condonation of delay in filing refund claimX X X X Extracts X X X X X X X X Extracts X X X X ..... file of even number dated 12-10-1993 (see Annex One ) and also the Circular Number 670 ( Annex Three ) of even date from the same file. 2. In this context, I have been directed to draw your attention to Instruction No. 1867, dated 30-11-1990 (see Annex Two ) and to inform you that paras 2, 3 and 4 of the said Instruction shall continue to be applicable. The Chief Commissioner/Director Gener al/Commissioner of Income-tax/Director of Income-tax should not only see that the conditions laid down by the various Circulars of the Board are satisfied, but should also look further into the facts of the case and examine other aspects such as the source of income, whether the income returned is reasonable considering the extent of profits disc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 1-11-1993. annex two Instruction No. 1867, dated 30-11-1990 1. Reference is invited to the earlier instructions/circulars issued by the Board regarding condonation of delays in claiming refunds, etc., by invoking the provisions of section 119(2)(b) of the Income-tax Act, specifically the following : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount and, therefore, the possibility of purposely delaying the filing of the returns so as to avoid scrutiny by the Department could not be ruled out. Needless to say that such cases were not found to be of genuine hardship. 3. The Board has been accepting such recommendations as it would be against public policy to condone such delays thereby giving an extended time to such assessees to manipulate their accounts so as to evade taxes. 4. The Board now desire that the Chief Commissioners/Directors General/Commissioners should not only see that the conditions laid down by the various Board's circulars are satisfied, but also look further into the facts of the case and examine the source of income, whether the income has been reflected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case may be, shall ensure that the conditions laid down under Board's order under section 119(2)(b) referred to above are fulfilled. 4. Where a 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 12-10-1993 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 1-11-1993 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. 2 Circular No. 8/2001, Dated 16-5-2001 1. The Board's or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under any of the provisions of the Act. 3. Subsequently the Karnataka High Court in the case of Associat ed Electro Ceramics v. Chairman, CBDT [1993] 201 ITR 501 held that the Board have power to condone the delay in cases having claim of carry forward of losses. The department did not file special leave petition against this order. Subsequently the matter was taken up with the Ministry of Law who also agreed with the view that the Board have power to condone the delay in filing the return under section 119(2)(b) of the Income-tax Act, 1961, in a case having claim of carry forward of losses. 4. Hence, conditions at Serial No. (ii) of order under section 119(2)(b), dated 12th October, 1993 stipulating that the delay cannot be condone ..... X X X X Extracts X X X X X X X X Extracts X X X X
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