Circular No. 07/2025

F. No.225/30/2025/ITA-11
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

North Block, the 25th June, 2025 Order u/s 119 of the Income-tax Act,1961

Subject: Relaxation of time limit for processing of valid returns of income filed electronically pursuant to order u/s 119(2)(b) of the Income-tax Act,1961 passed by Competent Authority-reg.

It has been brought to the notice of the Central Board of Direct Taxes ( the Board') that returns of income filed in pursuance of order u/s 119(2)(b) of the Income-tax Act,1961 (the Act) condoning the delay in filing such returns, could not be processed within the prescribed time limit under second proviso to section 143 (1) of the Act due to technical reasons. Such orders u/s 119(2)(b) of the Act condoning delay in filing of return were passed by Competent Authority as specified in CBDT's Circular No.09/2015 vide F.No.312/22/2015-OT dated 09.06.2015, Circular No.07/2023 vide F.No.312/63/2023-OT dated 31.05.2023 and latest Board's Circular No.11/2024 dated 01.10.2024. Grievances have been filed regarding non-receipt of refund due to non-processing of these returns in some cases.

  1. The matter has been considered by the Board and it has been decided to relax the time-frame prescribed in second proviso to sub-section (1) of section 143 of the Act in exercise of its powers under section 119 of the Act, and directs that valid returns of income filed electronically on or before 31.03.2024 pursuant to condonation of delay u/s 119(20) of the Act by the competent authority, for which date of sending intimation under sub-section (1) of section 143 of the Act has lapsed, shall be processed now. Accordingly, intimation under sub-section (1) of section 143 of the Act in respect of processing of such ITRs shall be sent to the assessees concerned by 31.03.2026.
  2. The relaxation accorded above shall not be applicable to cases where any proceeding for assessment (u/s 143(3)/144/144B/153A/153C) or reassessment (u/s 147/148) or recomputation or revision of income under the Act has been completed for the relevant assessment year subsequent to filing of such returns of income.
  3. All subsequent effects under the Act, including issue of refund along with interest as applicable, shall also follow in these cases. In those cases where PAN-Aadhaar linkage is not found, refund of any amount of tax or part thereof, due under the provisions of the Act shall not be made as laid down in Circular No.03/2023 dated 28.03.2023 vide F.No.370142/14/2022-TPL.
  1. The Director General of Income-tax (Systems), Benglauru shall specify the procedures for processing of such returns filed u/s 119(2)(b) of the Act to ensure that intimation u/s 143(1) of the Act shall be sent to assessees on or before 31.03.2026.
  2. This may be brought to the notice of all for necessary compliance.,

(Dr.fiiu Bala)

Deputy Secretary to the Government of India

Copy for information to:

i.  Chairman (CBDT) and all Members of CBDT

ii.  All Pr.CCsIT/DsGIT

iii.  DGIT(Systems), Delhi & DGIT (Systems), Bengaluru with request for further necessary action in the matter

iv.  Joint Secretaries/ Commissioners, CBDT

v.   Pr.DGIT, Directorate of Admin & Taxpayers Services

vi.  ADG(Systems)-4 with request for uploading on department's official website

vii.  JDIT, Database Cell for uploading on IRS Officers website

viii.  Guard file

(Dr. Indu Bala)

Deputy Secretary to the Government of India