I missed the return deadline and lost a refund or a loss carry-forward. Can the delay be condoned?
Yes, under s.119(2)(b), on an application showing genuine hardship. CBDT Circular No. 11/2024 dated 1 October 2024 sets the current rules: the application must be made within five years from the end of the relevant assessment year, and the deciding authority depends on the amount — Pr.CIT/CIT up to Rs 1 crore, CCIT above Rs 1 crore up to Rs 3 crore, Pr.CCIT above Rs 3 crore.
What it is for. Section 119(2)(b) lets the Board authorise income-tax authorities to admit an application or claim for exemption, deduction, refund or any other relief after the statutory period has expired, to avoid genuine hardship. In practice it is the route to claiming a refund on a return filed late, or to carrying forward and setting off a loss that was lost because the return was not filed in time.
The circular in force. Circular No. 11/2024 dated 1 October 2024 supersedes the earlier CBDT instructions, circulars and guidelines on the subject.
Monetary limits and who decides. Pr.CIT/CIT for claims up to Rs 1 crore for any one assessment year; CCIT for claims above Rs 1 crore and up to Rs 3 crore; Pr.CCIT for claims above Rs 3 crore. Delays in verifying an already-filed return are handled by CPC Bengaluru.
Time. An application for condonation shall not be entertained beyond five years from the end of the assessment year for which the claim is made, for applications filed on or after 1 October 2024. Where the refund arises from a court order, the period the proceedings were pending before the court is excluded, and the application must be filed within six months from the end of the month in which the court order was issued or the end of the financial year, whichever is later.
Disposal. Applications are to be disposed of, as far as possible, within six months from the end of the month in which the application is received.
What you must show. Reasonable cause for the delay and genuine hardship. The authority must also satisfy itself that the claim is correct and genuine, and may direct the Assessing Officer to make inquiries or scrutinise the case. On supplementary claims the older conditions carry through: the income must not be assessable in another person's hands, no interest is admissible on belated refund claims, and the refund must arise from excess tax deducted or collected, advance tax or self-assessment tax.
What 'genuine hardship' means. The Bombay High Court in Sitaldas K. Motwani v. Director General of Income-Tax read 'genuine' as authentic and held the phrase should be construed liberally to advance substantial justice, with the authority looking objectively at whether the delay actually impaired fair adjudication rather than prejudging the merits at the condonation stage. B.M. Malani v. CIT in the Supreme Court is the standard authority for a broad reading of hardship. The consistent theme is that a refusal must be reasoned; a mechanical rejection is liable to be set aside in a writ petition.
This is often the only door left after limitation has closed on everything else — the appeal, the revised return, the updated return. The five-year outer limit from 1 October 2024 replaced a six-year limit, so applications that would once have been in time may now be barred. Knowing which officer decides also matters: an application filed with the wrong authority wastes months.
The penalty provision was made harsher after my assessment year but before I filed the return. Which version applies to my concealment penalty?
The CBDT rejected my condonation application without dealing with my reasons. Can I challenge that?
In the loss year the officer recorded that the loss could not be carried forward, and we did not appeal. The officer of the set-off year now says that finding is final against us. Is it?
Our amalgamation was sanctioned long after the deadline for a revised return. Must the department accept revised returns filed to give effect to the scheme?
You want to make a claim you missed, but the time to revise the return has gone. Can you just write to the officer?
I am shifting my factory out of an urban area. I have paid advances for the new land, building and machinery but nothing is bought yet, and I have not deposited anything in the capital gains scheme. Is s.54G lost?
A declaration was required by the due date and you filed it late. Is that fatal?
I did not tick s.115BAA in the return and filed Form 10-IC late. Can I still get the concessional rate?
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