Section 119 of the Income Tax Act gives the Central Board of Direct Taxes (CBDT) the power to issue orders, instructions, and directions for effective administration of tax laws. It ensures fair treatment and uniform procedures across all income tax offices in India.
This section is especially helpful when taxpayers face delays or difficulties due to genuine reasons—CBDT can step in to allow relief, such as permitting delayed ITR filings or refunds that would otherwise be disallowed.
Explanation Using Example
Let’s understand how Section 119 works with a simple example:
- Situation: Riya missed the last date to file her Income Tax Return (ITR) for FY 2022-23 due to a serious illness.
- Issue: As per the law, delayed returns aren't accepted once the deadline passes.
- Relief: Under Section 119(2)(b), Riya can request the CBDT to allow her to file the return despite the delay by submitting a condonation request.
- Outcome: If the CBDT finds her reason genuine, it may allow her to file and claim the refund due.
Such provisions help taxpayers avoid financial loss caused by circumstances beyond their control.
What are the Sub-sections of Section 119 of the Income Tax Act?
Here’s a breakdown of the important sub-sections:
- Section 119(1): Empowers CBDT to issue orders for uniform tax implementation across India. These are binding on income tax authorities.
- Section 119(2)(a): Allows CBDT to relax strict enforcement of rules for specific taxpayers or groups to remove genuine hardship.
- Section 119(2)(b): Enables CBDT to authorize income tax authorities to accept delayed applications (e.g., for refunds or ITRs) if the taxpayer shows genuine hardship.
Who Can Accept and Reject Applications?
Under Section 119(2)(b), CBDT has delegated the power to certain authorities based on the value of the claim:
- Principal Commissioners / Commissioners: Can condone delay if the refund claim is up to Rs. 10 lakh.
- Principal Chief Commissioners / Chief Commissioners: For refund claims between Rs. 10 lakh and Rs. 50 lakh.
- CBDT (Central Board of Direct Taxes): Handles cases above Rs. 50 lakh.
Each application is reviewed carefully, and only those with genuine hardship are approved.
What Is Time Limit For Accepting Claims
Typically, delayed ITR filings or refund claims can be condoned under Section 119(2)(b) only if the request is made within 6 years from the end of the relevant assessment year.
Pro Tip: If you miss the original due date, don’t delay your condonation request. File it at the earliest with complete documentation to increase chances of approval.
How To File Return Under Section 119(2)(b)?
Follow these steps to file a return under Section 119(2)(b):
- Draft an Application: Clearly mention reasons for the delay and request condonation.
- Gather Documents: Include evidence of genuine hardship like medical records, legal documents, etc.
- Submit to Appropriate Authority:
- Based on claim value (as outlined earlier).
- Wait for Approval: Only after approval can you file your return.
- File ITR Normally: Use the ITR filing portal as usual once condonation is granted.
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Condonation Request For Filing ITR Post All Deadlines
If you've missed all deadlines—including the belated and revised return windows—Section 119 is your final resort.
Common Scenarios:
- Medical emergencies
- Natural disasters
- Technical issues during filing
- Legal disputes
Process:
- Write to the concerned tax authority with detailed reasoning and supporting documents.
- If the delay is justifiable, the authority may grant permission to file.
Pro Tip: Keep a copy of the acknowledgment and follow up regularly for updates.
Few Instances which the Judiciary has Upheld to be Cases of Genuine Difficulties
Here are some judicial rulings where the courts supported taxpayers:
- CIT v. Kulu Valley Transport Co.: Delay due to record misplacement was accepted.
- Mukesh Kumar Agrawal v. CBDT: Medical emergency considered genuine hardship.
- Rajasthan Patrika Pvt. Ltd. v. CBDT: Delay caused by auditor’s fault allowed.
These cases show that if your reason is fair and documented, you stand a strong chance of getting relief.
Provisions of Section 119
Section 119 empowers CBDT to:
- Guide officers through binding circulars and instructions.
- Help in resolving taxpayer issues by relaxing rules in deserving cases.
- Condone delays in return filing or refund claims when justified.
This section plays a crucial role in making the tax system more adaptive and humane.
Benefits of Section 119
- Leniency for Taxpayers: Offers relief in deserving cases.
- Administrative Flexibility: Empowers CBDT to address ground-level challenges.
- Uniformity in Implementation: Ensures standardized instructions to all officers.
- Promotes Transparency: Boosts taxpayer trust and cooperation.
- Time-bound Relief: Encourages timely resolution of issues.
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