CBDT Extends Time Limit To Process Refund Claimed ITRs for AYs 2018-19 to 2020-21 to January 31, 2024

F. NO. 225/132/2023/ITA-II dated 01-12-2023

The Central Board of Direct Taxes (CBDT) has noted technical issues or other non-attributable reasons causing the non-processing of validly filed income tax returns for AYs 2018-19 to 2020-21. As a result, taxpayers are experiencing delays in receiving legitimate refunds despite the delay not being their fault.

The Board has addressed taxpayer concerns by periodically issuing instructions under Section 119 of the Act, extending the statutory processing time limit for validly filed returns with refund claims in non-scrutiny cases. The latest order, dated October 16, 2023, grants a deadline extension until January 31, 2024, for processing electronically filed income returns with refund claims up to Assessment Year 2017-18.

In view of pending grievances of taxpayers related to the issue of refund for AYs 2018-19, 2019-20 and 2020-21, the Board has decided to allow the processing of electronically filed income returns with refund claims for AYs 2018-19, 2019-20, and 2020-21 beyond the specified time-frame in section 143(1), subject to administrative approval, excluding specific exceptions. The intimation of processing under section 143(1) of the Act can be sent to the assessee concerned by 31.01.2024.

However, this relaxation shall not be available to the following returns:

a) Returns selected in scrutiny,

b) Returns remain unprocessed, where either demand is shown as payable in the return or is likely to arise after processing it, and

c) Returns remain unprocessed for any reason attributable to the assessee.

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