CA Ramprasad

 CA RamprasadAnalysis of CBDT Circular No. 09/2015, Dated : June 9, 2015 on Condonation of Delay in Filing Refund Claim and Claim of Carry Forward of Losses

No Condonation for claim of refund or loss shall be entertained beyond six years from the end of the assessment year for which application or claim is made. The limit of six years is uniform for all authorities considering the application or claim.

In case where refund claim has arisen consequent to a Court Order, the period for which any such proceedings were pending before any Court of Law shall be ignored while calculating the said period of six years, provided such Condonation application is filed within six months from the end of the month in which such Court Order was issued or the end of financial year, whichever is later.

A belated application for claim of additional amount of refund after completion of assessment for the same year (Supplementary claim of refund) can be admitted subject to conditions.

In the case of an applicant who has made investment in 8% (Taxable) Bonds, 2003 issued by the Government of India opting for scheme of cumulative interest on maturity but accounted interest earned on accrual basis and the intermediary bank at the time of maturity has deducted tax at source on the entire amount of interest paid without apportioning the accrued interest and TDS over financial years involved, the time limit of six years for making such refund claim will not apply.

Conditions:

The Powers of acceptance or rejection of application for Condonation subject to the following   conditions:

  • It shall be ensured that the income or loss declared and or refund claimed is correct and genuine as well as it was due to genuine hardship on merits;
  • The Authority dealing with (Pr CCIT/CCIT/Pr.CIT/CIT) dealing with the case shall be empowered to direct the jurisdictional assessing officer to make necessary inquiries or scrutinize the case in accordance with the provisions of the Act to ascertain the correctness of the claim.

Further Conditions:

  • The Income of the assessee is not assessable in the hands of any other person under any other provisions of the Act;
  • No interest will be admissible on belated claim of refund;
  • The refund has arisen as a result of excess of tax deducted / collected at source and or excess advance tax payment and or excess payment of self-assessment tax as per the provisions of the Act.

Monetary Limits and Authority for Condonation of delay:

Monetary Limit Authority for considering Condonation Application/Claim
Up to Rs. 10 Lakhs ( For One Assessment Year) Principal Commissioner / Commissioner of Income Tax(Pr.CIT/CIT)
More than Rs. 10 Lakhs but not more than Rs. 50 Lakhs ( For One Assessment Year) Principal Chief Commissioner / Chief Commissioner of Income Tax(Pr.CCIT/CCIT)
More than Rs. 50 Lakhs CBDT

Time Limit for Disposal of application:

Application for Condonation should be disposed of within in six months from the end of the month in which the application is received by the competent authority as far possible.

Note:  This circular is equally applicable to applications or claims for Condonation of delay pending on the date of issue of this circular (09/06/2015).

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0 responses to “Analysis of CBDT Circular on Condonation of Delay in Filing Refund Claim and Claim of Carry Forward of Losses”

  1. Roshan James says:

    “No interest will be admissible on belated claim of refund”

    If AY is 2008-09 and I filed my return in 2010-11, They granted me refund in 2013-14. then can I claim interest for the period 2010-11 to 2013-14.

    Please reply.

  2. paramasivam says:

    The return with a covering letter can be filed in the ASK counter.Then we can file the condonation petition to the authorities. Best would be to file the return addressed to the assessing officer and file the petition before the competent authority with details of the return filed.Technically it is the assessing officer who has to take approval of the competent authority. But they will always so that we can send a report only when called for.So file the petition before the competent authority in duplicate and direcltly copy it to the assessing officer.

  3. ramprasad says:

    As of now no procedure is suggested. So it would be advisable to file the application along with the return of income. No prescribed format for making an application so it may be made on plain paper..

  4. Ajeet Singh says:

    Sir,Is it compulsory to submit application of Con donation of Petition along with affidavit of the application and after that if it has been accepted by the authority can we file belated returns online (within 6 months) or it shall be submitted manually ?

  5. Vidyadhar says:

    Dear Sir

    I would like to know whether application has to be filed or the return has to be filed first.

  6. CA Atin Dua says:

    Anybody know the procedure to file refund claim as per this circular?

  7. paramasivam says:

    a return, though belated shall be filed and thereafter only the claim arises. The section talks about condonation of delay in claim and not abt claim. This circular is only an update and refixation of approval limits, necceciated probably on the creation of new post as PCIT

  8. CA Nischal SIngla says:

    Sir, can U please tell me .. whether return should be filled first or application should be file. if there is nothing clearance about procedure. Can you explain abt proceedure on my email ID.

    Regards
    Nischal Singla

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