All about Sec 119(2)(b) application for condonation of delay


All about Sec 119(2)(b) application for condonation of delay


1.  Section 119 empowers the Central Board of Taxes (CBDT) to issue instructions to lower levels of authority.

2.  Section 119(2)(b) empowers CBDT to direct income tax authorities to allow any claim for exemption, deduction, refund and any other relief under the income tax act even after the expiry of the time limit to make such claim.

3.  However, such claims will only be allowed by the income tax authority provided, making such a claim within the prescribed due date was genuinely out of the control of the taxpayer.

4.  Applications for a claim of refund or carry forward of losses can be accepted beyond the due date, according to Section 119. Income tax authorities cannot entertain applications for refunds or claims for carrying forward losses that are more than six years old from the end of the relevant assessment year.

5.  Certain guidelines for accepting or rejecting these applications have been set out by the CBDT vide its Circular dated 9.5.2015.

6.  Key guidelines of the circular:

I.  For claims not exceeding Rs. 10 lakhs, the authority responsible is the Principal Commissioner of Income Tax or the Commissioner of Income Tax.

II.  Claims exceeding Rs. 10 lakhs but less than Rs. 50 lakhs are dealt with by the Principal Chief Commissioner of Income Tax or the Chief Commissioner of Income Tax.

III. Claims exceeding Rs. 50 lakhs fall under the purview of the CBDT.

IV.  Condonation applications should be decided within six months from the end of the month in which they are received by the competent authorities.