Income tax return has to be filed within due date prescribed under section 139 of the Income Tax Act, 1961. If return are not filed within due date, there is no remedy to the taxpayer to file the return of income. Even if the taxpayer wants to pay the tax for earlier year then also the taxpayers cannot do so voluntarily.

Only remedy in such cases is to seek permission as a special case. In case where taxpayers have tax liability in earlier years and the return are not filed, taxpayers can approach Assessing Officer with a request to issue notice u/s 148 so that return can be filed. Without any such notice, the income tax portal will not accept the returns.

There are few other situations wherein also the taxpayers can seek the permission from either CIT or CBDT for return filing. These situations are covered by Section 119 of the Income Tax Act, 1961.

CBDT has permitted the return filing in certain special situations like where

1. Where there is a refund due, or
2. Where there is a loss which taxpayers intend to carry forward

This mean if one fails to file his return within the due date for certain reasons beyond the control of the taxpayers or due to some genuine reasons, he has, subject to permission of authorities, can claim a refund or a carry forward of loss. It’s not a RIGHT but a facility to avoid genuine hardship on the taxpayers.

The Income Tax Act has empowered Central Board of Direct Taxes (CBDT) to authorize Income tax officers to accept such returns whereby exemption, deduction, refund, carry forward of losses, as the case may be, may be granted to the taxpayers even after the expiry of the statutory due dates prescribed.

Section 119 of the Income-tax Act deal with such situations.  Section 119 empowers the CBDT to issue instructions to lower level of authorities for smooth implantation of the provision of law. It further empowers CBDT to direct income tax authorities to allow any claim for exemption, deduction, refund and any other relief under the income tax act even after the expiry of the time limit to make such claim.

However, such claims can only be allowed by the lower authorities of it was genuinely out of the control of the taxpayer.

Applications for claim of refund or carry forward of losses can be accepted beyond the due date u/s 139. There are certain detailed guidelines for accepting or rejecting these applications. It has been elaborated by the CBDT vide its Circular Dated 09.05.2015. The circular empowers different authorities to entertain the applications on above grounds based on the monetary limits of different taxpayers.

The circular prescribes the monetary limit of the claim and the income tax authority empowered to deal with it, as under:

The taxpayers have to file an application for making a claim of refund or carry forward of loss within next 6 years from the end of the assessment year. This time limit is applicable to all the authorities mentioned above. Circular nowhere allow entertaining the claim beyond above the time limit referred above.

If any refund is given to any person on the basis of any such relief by the court, then the period for which court case was pending will not be considered for calculating 6 years of time. However, this period is ignored only where an application has been filed within 6 months from the end of the month of the court’s order or end of the relevant financial year– whichever is later.

On receipt of application, authorities should accept and close or reject such cases within 6 months from the end of the month in which they received the application.

Its only after a receipt of order of acceptance for filing income tax return from concerned authorities referred above, one can file return u/s 119(2)(b). It has to be filed online at www.incometaxindiaefiling.gov.in by adopting following sequential steps:

1. Login to your income tax e-filing portal at www.incometaxindiaefiling.gov.in
2. Go to the “e-file” tab and select “Income tax returns” from the drop-down menu therein
3. Select the assessment year from the drop down menu
4. Choose the filing type as “Filing against notice/order”
5. Select the section under which taxpayer want to file income tax return as “119(2)(b) read with section 139
6. Upload an XML and file your return by verifying it

There is a rider attached to section 119(2)(b). Any relief or claim will be allowed only when the following conditions are satisfied:

1. The income is not taxable in the hands of any other person under Income Tax Act.
2. No interest claim on such refund shall be admissible as it is all purely due to the fault of the taxpayers.
3. Refund claim as referred above has arisen due to excess of TDS or self-assessment tax or advance tax and not for any other reason.

Authorities receiving the application need to satisfy themselves with due investigation that the claim is genuine and reasonable or not.

If the authorities are satisfied then they can go ahead and allow the claims of taxpayers.