Notification/Circular No. – Circular No. 10/2025 dated July 28, 2025
Applicable Act/Rule – Income-tax Act, 1961
Applicable Section/Rule – Section 143(1) read with Section 119
The Central Processing Centre (CPC), Bengaluru, had mistakenly invalidated several electronically filed income-tax returns (ITRs) for various assessment years due to technical issues. These cases had already crossed the statutory time limits for processing, including the deadline of December 31, 2024, for AY 2023–24.
To address these errors and taxpayer grievances, the Central Board of Direct Taxes (CBDT) has extended the processing timeline by relaxing the time limit under the second proviso to Section 143(1), using its powers under Section 119 of the Income-tax Act.
Now, all electronically filed returns up to March 31, 2024, that were erroneously invalidated by CPC, will be revalidated and processed. The processing intimation under Section 143(1) must be issued by March 31, 2026.
Any refunds and interest due will be issued accordingly. However, refunds will be withheld where PAN is not linked with Aadhaar, in line with CBDT Circular No. 03/2023 dated March 28, 2023.
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