2025 (10) TMI 766 - AT - Income Tax

s.119(2)(b) relief limited to genuine hardship where claim filed within due date and default beyond taxpayer control

ITAT DELHI - AT held that CBDT's power under s.119(2)(b) to authorize tax authorities to admit belated claims is meant to prevent genuine hardship and ... Appealability of order u/s 119(2)(b) before the ITAT - HELD THAT:- Section 119 of the IT Act empowers the Central Board of Taxes (CBDT) to issue instructions to lower levels of authority for proper administration of the Income tax Act. For this purpose, section 119(2)(b) empowers CBDT to authorize any income tax authorities to admit 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 to avoid genuine hardship to the assessee. Such claims will only be entertained by the income tax authority provided such claims are made within the prescribed due date and the default occurred due to circumstances beyond the taxpayer’s control. Since the instant order u/s 119(2)(b) is not appealable, we reject the appeal at the initial stage itself. We, therefore, dismiss the grounds of appeal raised by the assessee. Assessee appeal dismissed. Challenge to order passed under section 119(2)(b) of the Income-tax Act, 1961 for A.Y. 2020-21 - none appeared for the assessee; appeal proceeded with departmental representative. The Tribunal held that the impugned 'order u/s 119(2)(b) of the Act is not appealable order before the ITAT as per section 253(1) of the Act.' It explained that 'Section 119 ... empowers the Central Board of Taxes (CBDT) to issue instructions to lower levels of authority for proper administration of the Income tax Act,' and that section 119(2)(b) authorizes income-tax authorities to admit claims for 'exemption, deduction, refund and any other relief' after prescribed time to avoid 'genuine hardship,' provided such claims are made within the prescribed due date and the default arose from 'circumstances beyond the taxpayer's control.' Since the order under section 119(2)(b) is non-appealable, the appeal was rejected at the threshold and the grounds of appeal were dismissed; appeal ITA No. 3954/DEL/2025 dismissed.