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CBDT Directive Reg Processing Of Returns U/s 143(1) Having Refund Claims

The Directorate of Income-tax (Systems) has issued an important directive dated 12.09.2019 on the subject of functionality for processing of returns having refund claims which were not processed within the time allowed u/s 143(1) due to some technical or other reasons

ITBA-Processing Instruction No 9
ARA Center, Ground Floor, E-2, [aandewalan Extens ion,
New Delhi -11 0055
F.No. System/ITBA/ Instruction/ITR Processing/177/16-17/
Dated: 12.09.2019
All Principal Chief Commiss ioners of Income-tax/ CCsIT
All Principal Director Generals of Income Tax /DGsIT
All Principal Commissioners of lncome-tax/Csl’T/Cs IT(Admin &TPS)
All Principal Directors of Income Tax/Ds IT

Subject: –Functionality for processing of returns having refund claims which were not processed within the time allowed ujs 143(1) due to some technical or other reasons- reg.

This is in reference to the subject mentioned above.

2. References from the field formations and tax payers have been received in this Directorate informing that due to some technical reason or otherwise but not attributable to the assessee, the valid returns filed by tax payers, could not be processed within the time prescribed under section 143(1) of the Act. Due to which, refund due to the assessee could not be issued.

3. To mitigate the genuine hardship being faced by the tax payers on this issue, the CBDT, in exercise of powers conferred on it, under section 119 of the Act, has relaxed the time frame prescribed in second proviso to sub section (1) of section 143 till 31.12.2019, vide Order under sect ion 119 of the Act dated 05.08.2019 issued through File N0225/194/2019/ITA-I1. Therefore all concerned are requested to forward such references/ proposals at the earliest to this directorate, for the enablement of processing of such time barred returns. The proposals for the enablement of time barred processing must reach to the Directorate of Systems, New Delhi by 30.11.2019 so that these references can be processed well with in the time period ending on 31.12.2019. It is also to clarify that in each such case, the processing rights will be enabled by the ITBA team and subsequently, the processing action has to be performed by the respective assessing officer. All references must be sent alongwith administrative approval of concerned PCCIT/ CCIT to this Directorate. In the absence of administ rative approval of CCIT, such reference s will not be considered.
The following scheme and validation are prescribed in the above said Order.
(i) Valid return for the assessment years is filed under permitted time limit u/ s 139 or 142 (1).
(ii) Assessee has claimed refund in return of income.
(iii) On computation, the resultant outcome is refund.
(iv) The returns of income should not have been remained unprocessed due to any reason attributable to the concerned assessee.
(v) The returns of income should not be under Scrutiny assessment in view of provisions of sub- section (1D) of section 143 of the Act .
Processes to be followed :
(i) Prior administrative approval of concern ed Pr.CCIT/CCIT must be obtained for processing of such eligible time-barred returns.
(ii) Once administrative approval is accorded by the concerned PCCIT/ CCIT, the concerned Pr.CIT/ CIT would make reference to the Pro DGIT (Systems). to provide necessary enablement in system to the assessing officer on case to case basis.
4. In view of above Instruction from CBDT. the field formations are requested to follow following process :-
(a) For the cases up to A.Y. 2006-07: Cases for these years will not be Processed in System, The AO can process such time-barred re turns manually after obtaining prior approval of concern ed Pr.CCIT/ CCIT and thereafter upload the int imation u/s 143(1) in ITBA through manual order upload functionality as explained in ITBA Assessment Instruction No 9 dated 07.05.201B. The administrative approval of Pr.CC IT/CCIT may ITBA-Processing Instruction No 9 be communicated by the PCITfCIT to the Pro DGIT(Systems) alongwith amount of refund claimed so that necessary enablerncnt in system to upload such intimation may be acti vated. The refund determined in the processing will be issued through refund banker
(b) For the cases of A. Yr. 2007-08 to 2015-16: Cases of these years will be required to be processed in AST. The administ rative approval of Pr.CCIT/CCIT may be communicated by th e PCIT/CIT to the Pro DGIT(Systems) so that necessary enablement in system to upload such intimation may be activated. Thereafter concerned assessing officer will be able to process such time time bar red returns. The re fund arising out of processing will be issued th rough refund banker.
(c) Cases of A. Yrs. 2016-1 7 &2017-18 : For the AYrs . 2016-17 &2017-18 all the Paper returns and  e-filed returns pushed to AO by CPC-ITR are required to be processed at ITBA as per process described in ITBA Processing Instructions issued so far. If any such return is not processed, the process given in Para (b) is required to be followed. After which the necessary enablement will be activated in system. The AO are required to enter or modify the data and send the return to CPC-ITR for final computation and issuance of refund.
(d) For the e-flled cases which were not transferred to AO and remained unprocessed at CPC-ITR :
Cases in which valid unprocessed returns of income are lying with CPC, Bengaluru and the assessing officer is in receipt of request from the assessee seeking refund, the AO is required to verify that all the pre-conditio ns as per CBDT Inst ructions are com plied an d obtain th e approval of Pr.CClTfCIT to process such time-barred returns. Thereafter, the reference along with approval of Pro CCITfCCIT will have to be forwarded to CPC for further necessary action. The AO has to ensure that no assessment order (Manual or otherwise) is passed in such cases. Thereafter CPC•ITR will process such cases and issue refund as per extant procedure,
5. The navigation path for processing of such returns is given as under:
(a) In AST• For th e return of A Yr. 2007-08 to 2015-16: To process such cases, AO has to fetch the re quis ite return through the path “AST > Processing > Processing u/s 143(1)’.
(b) In ITBA- For the AYrs. 2016-17 &2017-18 : ITR Processing> Return Receipt Register > View RRR/nter Return Details
(c) Returns prior to A Yr. 2007-08: These returns are required to be processed manually after getting approval of Pro CCITfCCIT and upload in ITBA through manual order upload functionali ty through the path – Go to Assessment home page> Menu Manual Order Upload
6. The complete proced ure is elaborated in the user manual for the funct ionality which is available on ITBA forthe convenience of the users. This may be circulated amongst all ITBA-Processing Instruction No 9 officers working in your charge. With this, the var ious re presentations received from field format ions in th is regard sta nd disp osed off.
7. In case of any tec hnical difficulty being observed, users may immediately contact the ITBAhelpd esk .
A. URL of helpd csk of ITBA: http_:/ /itbahelpdesk.incometa
B. Helpd esk number –0120-28112 00
C. Email id : itba.helpdesk@jncomet
8. It is further emphasized that a ll such cases should be examined on priority and re fer ence as per prescribed procedure be sent to this Direc torate or to CPC-ITR as the case may be , as soon as possible. It is expect ed that all officers may henceforth use the aforesaid process, wherever required, while redressing the grievance of tax payers seeking refund where relevant returns could not be processed due to reasons not attributable to the assessee.
9. This is issued with the prior approval of ProDGIT (Systems).
Yours sincerely,
(Sukesh Kumar Jain)
Commissioner of Income Tax (ITBA)
Directorate of Systems, New Delhi

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