CBDT has issued Circular No. 07/2025 dated 25.06.2025, granting relaxation in the statutory time limit prescribed for processing of valid returns filed pursuant to condonation of delay orders under Section 119(2)(b).

Relaxation is apparently due to unspecified “technical reasons.” . So instead of defaulting, they’ve extended their own deadline.

The new processing cut-off date is now 31.03.2026.