Section 239 · Administration
Section 239 of the Income-tax Act, 2025 — Instructions to Subordinate Authorities (CBDT Circulars & Condonation of Delay)
By CA Rajat Agrawal
Updated 04 Jul 2026
Chapter XIV
📜 What the law says — Section 239, Income-tax Act 2025
239. (1) The Board may issue such orders, instructions and directions to other
income-tax authorities as it considers fit for the proper administration of this
Act, and such authorities and all other persons employed in the execution of this
Act shall observe and follow such orders, instructions and directions.
(2) No orders, instructions or directions under sub-section (1) shall be issued so as
to—
(a) require any income-tax authority to make a particular assessment or to
dispose of a particular case in a particular manner; or
(b) interfere with the discretion of the Joint Commissioner (Appeals) or
Commissioner (Appeals) in the exercise of his appellate functions.
(3) Without prejudice to the generality of the foregoing power, the Board may,—
(a) if it considers it necessary or expedient so to do for the proper and efficient
management of the work of assessment and collection of revenue, issue,
from time to time (whether by way of relaxation of any of the provisions
of sections 263, 270, 271, 279, 280, 287, 288, 298, 398(3), 406, 407, 408,
423, 424, 425, 427, 428, 439, 448, 449 or otherwise), general or special
orders in respect of any class of incomes or class of cases,––
(i) setting forth directions or instructions (not being prejudicial to
assessees) as to the guidelines, principles or procedures to be
followed by other income-tax authorities in the work relating to
assessment or collection of revenue or the initiation of proceedings
for the imposition of penalties; and
(ii) any such order may, if the Board is of the opinion that it is necessary
in the public interest so to do, be published and circulated in the
prescribed manner for general information;
(b) if it considers it desirable or expedient so to do for avoiding genuine hard-
ship in any case or class of cases, by general or special order, authorise
any income-tax authority, not being a Joint Commissioner (Appeals) or a
Commissioner (Appeals) to admit an application or claim any exemption,
deduction, refund or any other relief under this Act after the expiry of
the period specified in this Act for making such application or claim and
deal with the same on merits as per law;
(
In plain language
What Section 239 says in plain English
Section 239 of the Income-tax Act, 2025 is the provision that gives the Central Board of Direct Taxes (CBDT) — the apex body that runs India's income-tax department — the legal power to issue orders, instructions and directions to all lower income-tax authorities (Principal Chief Commissioners, Commissioners, Assessing Officers and staff). Every officer "employed in the execution of this Act" is legally bound to observe and follow these instructions. This is the modern successor to the well-known Section 119 of the Income-tax Act, 1961, and it carries forward the same substance with clearer, tighter drafting.
In short, this is the section under which the famous CBDT Circulars are issued. When you read "as per CBDT Circular No. X" in tax news, that circular's authority flows from Section 239.
The three main powers under Section 239
- Power to issue binding instructions (sub-section 1): The Board can direct field officers on how to administer the Act uniformly across India — for example, standard procedures for scrutiny, guidelines on refunds, or clarifications on how a deduction should be read.
- Two important limits (sub-section 2): The Board CANNOT direct an officer to make a particular assessment or dispose of a particular case in a particular manner, and it CANNOT interfere with the appellate discretion of the Joint Commissioner (Appeals) or Commissioner (Appeals). This protects the quasi-judicial independence of officers deciding your case.
- Power to grant relief / condone hardship (sub-section 3): To avoid genuine hardship, the Board may (a) relax the rigour of certain listed procedural sections, (b) authorise an authority to admit a belated application or claim for exemption, deduction, refund or other relief after the normal deadline has expired, and (c) relax conditions under Chapter IV (computation of income) and Chapter VIII (deductions) where the default was due to circumstances beyond the taxpayer's control, provided compliance happens before assessment is completed.
Who does it apply to?
- The CBDT — it is the source of the power.
- All income-tax officers — they are bound to follow instructions issued under it.
- Every taxpayer — indirectly but powerfully. CBDT circulars that are beneficial to taxpayers are binding on the department (though not on the taxpayer or the courts). If a circular relaxes something in your favour, the AO cannot ignore it.
Binding nature — a crucial nuance
Courts have long held (under the old Section 119, and the position continues) that beneficial circulars are binding on the tax department even if they deviate from the strict letter of the law. However, a circular cannot be binding on the taxpayer or on the courts/tribunals, and the CBDT cannot use a circular to impose a burden not sanctioned by the Act. So a circular can only help you or clarify — it cannot override the statute to your detriment.
Condonation of delay — the part taxpayers use most
The most practically useful power is condonation of delay. If you missed a deadline to claim a refund or to carry forward a loss because of genuine hardship, you can apply to the appropriate authority (Principal Commissioner / Commissioner / CBDT depending on the amount) to admit your belated claim. Under the framework carried over from CBDT Circular No. 9/2015, applications should generally be filed within a set outer time window and the claim must be genuine, correct and supported by evidence. The authority that decides depends on the monetary size of the claim (see table).
How it interacts with other sections
- It works alongside the sections governing the income-tax authorities and their appointment, giving the CBDT its supervisory teeth.
- It backs up powers of revision and reassessment by allowing standardised instructions to officers.
- It supports the faceless assessment and appeal machinery, since scheme guidelines and thresholds are rolled out through instructions of this kind.
Practical implications for you
- Missed a refund deadline? You are not automatically finished — a condonation application under Section 239 may revive it.
- An AO ignoring a beneficial CBDT circular is acting unlawfully; you can cite the circular.
- Do not expect a circular to be used against you — that is legally not permitted.
- The CBDT cannot instruct an officer to decide your appeal a particular way; appellate authorities are independent.
💡 Example
Worked example 1 — Condonation of a refund claim. Rohan, a salaried employee, had TDS of ₹48,000 deducted in FY 2024-25 but forgot to file his return and missed the deadline to claim the refund. Because his total refund (₹48,000) is a modest amount, his application for condonation of delay would fall within the powers of the Principal Commissioner / Commissioner under the delegated authority framework of Section 239. If he shows the delay was genuine (say, hospitalisation) and the refund is correct, the officer can admit the belated claim and the ₹48,000 refund can be processed.
Worked example 2 — Loss carry-forward. Meera's business had a loss of ₹12 lakh in FY 2024-25 but she filed her return late, which normally bars carry-forward of the business loss. She applies under Section 239 for condonation. Because the claim (loss to be carried forward) exceeds the lower slabs, the decision authority is higher — a Chief Commissioner / higher authority or the CBDT depending on the amount. If accepted, she can set off the ₹12 lakh against future profits, potentially saving up to ₹12,00,000 × applicable rate in future tax.
A short relatable story. Think of the CBDT as the head office of a large bank and the Assessing Officers as branch managers. The head office issues a circular saying, "Process small refunds without extra paperwork." Every branch must follow it — that's Section 239 sub-section (1). But head office is not allowed to phone a branch and say, "Reject Mr. Sharma's specific loan." That interference in an individual case is exactly what sub-section (2) forbids. And when a customer misses a deadline because of a real emergency, head office has a compassion window to still help — that's the condonation power in sub-section (3).
| Aspect | Section 239, Income-tax Act 2025 | Section 119, Income-tax Act 1961 (old) |
|---|
| Core power | CBDT issues binding orders/instructions/directions to officers | Same |
| Bar on directing outcome | Cannot order a particular assessment or case disposal | Same |
| Protection of appellate discretion | Explicitly protects JCIT(A) and CIT(A) independence | Protected (JCIT(A)/CIT(A)) |
| Condonation of delay | Yes — belated claims for refund, deduction, exemption, relief | Yes — s.119(2)(b) |
| Relaxation of listed sections | Yes — specified assessment/penalty/procedure sections | Yes — s.119(2)(a) |
| Reporting of certain relaxations | Parliamentary reporting for hardship relaxations | Similar safeguard |
Related sections
Section 240 — Income-tax authorities (hierarchy and structure) Section 241 — Appointment of income-tax authorities Section 263 — Faceless / assessment scheme powers Section 288 — Interest and procedural provisions the Board may relax Section 433 — Refund of tax (linked to condonation of belated refund claims) Section 270 — Penalty provisions the Board may issue instructions on
Frequently asked questions
What is Section 239 of the Income-tax Act, 2025 in simple terms?
It is the section that empowers the CBDT to issue binding orders, instructions and directions (the famous CBDT circulars) to all income-tax officers for the proper administration of the Act. It is the successor to Section 119 of the old 1961 Act.
Are CBDT circulars binding on me as a taxpayer?
No. Circulars issued under Section 239 are binding on the tax department, and beneficial circulars can be relied upon by you. But a circular cannot be enforced against a taxpayer or override the statute to your disadvantage, and it is not binding on courts or tribunals.
Can I claim a refund after missing the deadline using Section 239?
Yes, potentially. Section 239 allows the appropriate authority (Principal Commissioner, Commissioner or CBDT depending on the amount) to condone the delay and admit a belated refund or loss-carry-forward claim if you can show genuine hardship and that the claim is correct.
Which authority decides my condonation application?
It depends on the monetary value of the claim. Smaller claims are handled by the Principal Commissioner/Commissioner, larger ones by Chief Commissioner-level authority, and the biggest by the CBDT, following the delegation framework carried over from CBDT Circular No. 9/2015.
Can the CBDT tell an Assessing Officer how to decide my case?
No. Sub-section (2) expressly prohibits the Board from directing any officer to make a particular assessment or dispose of a specific case in a particular manner, and it cannot interfere with the appellate discretion of the JCIT(A) or CIT(A).
What is the difference between Section 239 (2025) and Section 119 (1961)?
The substance is the same, but Section 239 is drafted more clearly and explicitly codifies protection for the independence of appellate authorities (JCIT(A) and CIT(A)) alongside the existing bar on directing individual assessments.
Is there a time limit to file a condonation application for a refund?
The section itself allows admitting claims after the normal deadline, but the administrative framework generally prescribes an outer window (historically around six years from the end of the relevant assessment year for refund/loss claims). Always check the latest CBDT circular for the exact current limit.
C
CA Rajat Agrawal
Chartered Accountant, EaseValue · Reviewed 04 Jul 2026
This explainer is prepared and reviewed by EaseValue's tax team, based on the text of the Income-tax Act, 2025 (as amended by the Finance Act, 2026).
Disclaimer: This page explains the law in general terms for education and is not professional advice. The Income-tax Act, 2025 takes effect from 1 April 2026; provisions, thresholds and interpretations may change. Please confirm your specific position with our team before acting.
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