Instructions to subordinate authorities – Authorisation regard­ing condonation of delay in filing refund claim

1. Attention is invited to the Board’s Order under section 119(2)(b) [F. No. 225/201/87-IT(A-II)], dated 5-2-1988 whereby the Board, in exercise of the powers conferred by clause (b) of sub-section (2) of section 119, have raised the monetary limit of cases in which the ITO is authorised to admit belated refund claims under section 237.

2. With a view to avoid hardship to the taxpayers, the Income-tax Officers have now been authorised to admit belated refund claims in respect of amounts up to Rs. 10,000 provided the conditions laid down in the said order are fulfilled. These conditions are as follows :

(i)   the refund arising as a result of tax deducted at source in respect of assessment year under the provisions of sections 192, 193, 194, 194A, 194B, 194C, 194D and 195 does not exceed Rs. 10,000;

(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., a claim for additional amount of refund after the comple­tion of the original assessment for the same assessment year; and

(iv)   the income of assessee is not assessable in the hands of any other person under any provisions of the Act.

3. This order will be effective from 10-2-1988.

Circular : No. 503 [F. No. 203/201/87-IT (A-II)], dated 6-2-1988.

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