IT dept sets April 30 deadline for AY2122’s unprocessed returns

series history,” the report said.

The survey also showed the secondweakest cost pressures in the sector since August 2020 and the softest increase in selling charges for two years.

Higher food, freight and labour costs pushed up input prices, according to anecdotal evidence. “Indian companies operating in the service sector sought to protect their margins by raising prices charged to customers. That said, the rate of inflation was slight, below its longrun average, and cooled to the weakest in two years,” the report said.

Business confidence in the yearahead outlook for activity weakened in February. Still, around 26 per cent of companies foresee growth and only 2 per cent anticipate a fall. Where optimism was signalled, firms cited buoyant client appetite, greater publicity and an improvement in customer relations.

In an order dated March 1, the Central Board of Direct Taxes (CBDT) has noted that due to certain technical issues, several returns for AY 22 could not be processed. Consequently, intimation regarding the processing of such returns could not be sent within the timeframe as mentioned under Section 143(1) of the Income Tax Act. “This has led to a situation where the taxpayers are unable to get their legitimate refund... although the delay is not attributable to them,” the order said. Therefore, the Income Tax (IT) department has revised its timeline for completing the assessment and inform the asessess by April 30, 2024. However, this will not cover cases under scrutiny.

PROVIDING RELIEF

The order further said after due examination, “to mitigate genuine hardship being faced by the taxpayers on the issue, the board relaxes the timeframe prescribed under the law and directs that all returns of income validly filed electronically for AY 202122 and for which date of sending intimation has lapsed, can now be processed.”

“The intimation of such processing under Section 143 (1) of the Act can be sent to the concerned assessee by April 30, 2024,” the order said. It also said that all subsequent efforts should also follow as per prescribed procedure.

The order has specified three categories of returns for which relaxed norms will not be applicable. The first category relates to returns selected for scrutiny. Second category deals with returns remaining unprocessed, where either demand is shown as payable or is likely to arise after processing it. And third category is returns remaining for any reasons attributable to the assessee.