Processing of Income Tax Returns with refund claims if not processed due to technical or other reasons

By | October 12, 2018
(Last Updated On: October 12, 2018)

Processing of returns with 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 4

ARA Center, Ground Floor, E-2, Jhandewalan Extension,

New Delhi – 110055

F.No. System/ITBA/Instruction/ITR Processing/177/16-17/

Dated: 08.10.2018

All Principal Chief Commissioners of Income-tax/CCsIT
All Principal Director Generals of Income Tax /DGsIT
All Principal Commissioners of Income-tax/CsIT/CsIT(Admin & TPS)
All Principal Directors of Income Tax/DsIT


Subject: – 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- Reg

This is in reference to the subject mentioned above.

2. Representations from the field formations and tax payers were being received with regard to the facts that due to some reasons, the valid returns filed by tax payers, were not 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 under section 119 of the Act has relaxed the time frame prescribed in second proviso to sub section (1) of section 143 till 31.3.2019, vide instruction no 05 of 2018 dated 21.08.2018. The following scheme and validation are prescribed in the above said instruction.

Pre- conditions:
(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.

Process to be followed:
(i) Prior administrative approval of concerned 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 Pr. 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 returns manually after obtaining prior approval of concerned Pr.CCIT/CCIT and thereafter upload the intimation u/s 143(1) in ITBA through manual order upload functionality as explained in ITBA Assessment Instruction No 9 dated 07.05.2018. The administrative approval of Pr.CCIT/CCIT may be communicated by PCIT/CIT to the Pr DGIT (Systems) so that necessary enablement in system to upload such intimation may be activated. 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 administrative approval of Pr.CCIT/CCIT to process such cases may be communicated by PCIT/CIT to the Pr DGIT (Systems) so that necessary enablement in system to process such returns may be activated. Thereafter concerned assessing officer will be able to process such time-barred returns. The refund arises out of processing will be issued through refund banker.

(c) Cases of A. Yr. 2016-17: For the A.Yr. 2016-17 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 Instruction No 1, 2 and 3. 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 return to CPC-ITR for final computation and issuance of refund.

(d) For the e-filed cases up to AY 2016-17 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-conditions as per CBDT instructions are complied and obtain the approval of Pr.CCIT/CCIT to process such time-barred returns. Thereafter, the request from assessee along with approval of Pr.CCIT/CCIT will have to be forwarded through proper channel 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 the return of A. Yr. 2007-08 to 2015-16:

To process such cases, AO has to fetch the requisite return through the path

“AST > Processing  Processing u/s 143(1)’.

(b) In ITBA- For the A.Yr. 2016-17:

ITR Processing > Return Receipt Register  > View RRR/Enter Return Details

(c) Returns prior to A. Yr. 2007-08: These returns are required to be processed manually after getting approval of Pr. CCIT/CCIT and upload in ITBA through manual order upload functionality through the path –

Go to Assessment home page > Menu > Manual Order Upload

6. The complete procedure is elaborated in the user manual for the functionality which is available on ITBA for the convenience of the users. This may be circulated amongst all officers working in your charge. With this, the various representations received from field formations in this regard stand disposed off.

7 In case of any technical difficulty being observed, users may immediately contact the ITBA helpdesk.

A. URL of helpdesk of ITBA : http ://
B. Helpdesk number – 0120-2811200
C. Email id : itba.helpdesk

8. It is further emphasized that all such cases should be examined on priority and reference as per prescribed procedure be sent to this Directorate or to CPC-ITR as the case may be , as soon as possible. It is expected 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 Pr. DGIT (Systems).

Yours sincerely,

(Ramesh Krishnamurthi)
Addl.DG(Systems)-3, New Delhi

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