PROCESSING OF RETURNS FOR A.Y. 2007-08 - STEPS TO CLEAR THE BACKLOG - REGARDING
INSTRUCTION No. 12/2008, DATED 5-9-2008
 
Kindly refer to above.
2. A review of CAP-II statements for June and July 2008 shows a large pendency of returns for A.Y. 2007-08 in almost all CCIT Regions. The Board had earlier kept a target of 4-6 months for processing of returns. The criteria for matching claims for granting TDS certificates were relaxed in June 2006 in order to expedite the processing of pending returns and necessary instruction in this regard was issued vide instruction no.6/2008 dated 18th June, 2008. However, the number of returns processed has not shown any significant improvement. A large number of electronic returns for A.Y. 2007-08 as also refund returns are still pending for processing. The Board is concerned about a slow pace of progress in this regard. In order to speed up the processing of pending returns for A.Y. 2007-08, it has been decided to adopt the following strategy: -
(1) All pending returns for A.Y. 2007-08 involving refund claims (including electronic returns with refund claims) must be processed on priority basis by 30th September, 2008. Where any scrutiny assessment is pending in these cases, refund should be issued only after completion of the scrutiny assessment.
(2) For processing electronic returns involving refund claims, TDS data supplied by DGIT (Systems) on CDs along with AST instructions 68 may be utilized.
(3) Refund returns involving inter-RCC migration of PAN may be processed on TMS.
(4) Since data of electronic returns is already on the system, once this is acquired into the RCC data base, it will become part of the selection process under CASS. Therefore, electronic returns for A.Y. 2007-08 not involving refund claims can be taken up for processing after 30th September. However, it has to be ensured that all such returns are acquired and incorporated into RCC data base before the next round of CASS is run.
(5) Returns in forms ITR-4 and 5 filed in paper mode by business assessees and not covered by section 44AB of the Income Tax Act, 1961 should be taken up for processing on AST at the stations on network, on priority basis at the earliest before next round of selection through CASS.
(6) Salary returns for A.Y. 2007-08 in which there is no refund or demand and the TDS claim is below Rs.5 lakh, may be given the last priority for processing.
This may be brought to the notice of all concerned for strict compliance. Any difficulties arising in processing of returns on AST may be brought to the notice of DGIT(Systems) and, wherever necessary, to the Board.