Section 119 of Income Tax Act: Powers of CBDT to Grant Relief and Relaxation

What Is Section 119 of the Income Tax Act?

Think of CBDT as the captain of all tax officers across India. Section 119 gives this captain a big power: they can issue instructions, relax rules, or offer relief—like letting someone file their tax return late—if the delay was due to a real problem. This keeps the tax system fair, even when things go wrong.

What Powers Does CBDT Have Under Section 119?

1. Issue Circulars and Instructions

CBDT can send official directions to tax officers everywhere to ensure tax laws are applied the same way all over the country. These are like helpful guides for consistent decision-making.

2. Relax Legal Provisions in Special Cases

If someone is in a tough spot—like missing a filing by mistake, facing illness, or dealing with natural disasters—the CBDT can ask lower authorities to be lenient with certain rules, such as missing a deadline.

3. Grant Relief for Genuine Hardships

Even after deadlines have passed, CBDT can allow refunds, deductions, and other claims—if it was really out of your control. It’s a way to protect good taxpayers from losing out unfairly.

When Can Relief Be Granted Under Section 119?

1. Missed Tax Filing or Claims

If someone missed the deadline to file an income tax return or claim a refund or loss, they can still apply for relief if they give a good reason.

2. Condonation of Delay for Refunds or Losses

Even if a deadline is missed, CBDT can allow you to claim a refund or carry losses forward—based on a proper application and approval.

3. Genuine Hardship Situations

Examples include serious illness, technical glitches, or other emergencies. If you can explain what happened, CBDT may agree to help.

How Does CBDT Exercise Its Powers?

1. Through Circulars and Guidelines

CBDT publishes circulars (official letters) outlining new rules. For example, in October 2024, CBDT made clear rules on which authority can accept or reject delayed tax claims and within what monetary limits.

2. For Administrative Convenience and Uniformity

CBDT’s directions help tax officers handle cases fairly and consistently across all regions.

3. Judicial Recognition

Courts recognize Section 119 as a valid tool—judges have praised its role in balancing fairness with the law, especially in hard cases.

Limitations of CBDT’s Powers Under Section 119

• Cannot rewrite the law. Relief applies only when laws allow—CBDT can’t change tax rules.
• Bound by time and conditions. For instance, some reliefs must be applied for within set time limits (like five or six years).
• Must respect legal bounds. Condonation is based on merit—it isn’t an automatic right.

Importance of Section 119 for Taxpayers

• Give second chances. Especially for honest taxpayers who miss deadlines for real reasons.
• Boosts fairness and flexibility. Makes the tax system kinder without weakening it.
• Provides peace of mind. You know there’s a path to relief, even after mistakes.

Timeframes You Should Know

Recent CBDT rules allow claims up to five years after the assessment year—if applied from October 2024. Before that, it was generally six years.

Authorities Who Can Accept Requests

• Claims up to ₹1 crore → Principal Commissioners / Commissioners
• ₹1–3 crore → Chief Commissioners
• Above ₹3 crore → CBDT itself 

Processing must be done within six months of the request.

Everyday Examples Where Relief Helps

• Late ITR filing due to medical emergency
• Carrying forward losses after missing a deadline
• Delay in verifying return because of a technical outage