Circular No. 521-Income Tax dated 17-8-1988

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

1. Attention is invited to Board’s order under section 119(2)(b) of the Income-tax Act [F.No. 225/201/87-IT(A-II), dated 17-8-1988 where­by the Board, in exercise of the powers conferred by clause (b ) of sub-section (2) of section 119 of the Income-tax Act, 1961, have authorised the Income-tax Officer to admit belated refund claims under section 237 of the Income-tax Act, 1961 arising as a result of excess advance tax paid.

2. With a view to avoid genuine hardship to the taxpayers, As­sessing 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 excess advance tax payment in respect of assessment year under the provisions of section 208 of the Income-tax Act, 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 the assessee is not assessable in the hands of any other person under any provisions of the Act.

3. This order will be effective from 1-8-1988.

Circular : No. 521, dated 17-8-1988.