2014 (6) TMI 610 - HC - Income Tax

Revised return to be filed - Refund of TDS which was not claimed in the original return - Payment made for Optional Early Retirement Scheme of RBI Held that - The matter is fairly old and the petitioner is a retired citizen, the petitioner is directed for filing its revised return of income revenue would dispose of the assessee s claim for refund within a further period of two weeks from the date of filing of revised return of income.

Summary

Issues involved:
Refund of Tax Deducted at Source (TDS) by Reserve Bank of India (RBI) under the Optional Early Retirement Scheme, application for rectification of return of income for Assessment Year 2004-05, delay in disposal of rectification application by the Chief Commissioner of Income Tax, filing of revised return of income, grant of refund to the petitioner, retirement of the petitioner.

Analysis:
The petitioner filed a petition seeking a refund of the Tax Deducted at Source (TDS) by RBI under the Optional Early Retirement Scheme, claiming exemption under Section 10(10C) of the Income Tax Act, 1961. The petitioner had not initially claimed the refund in the return of income filed for Assessment Year 2004-05, but later applied for rectification under Section 154 of the Act after a circular was issued by the Central Board of Direct Taxes certifying the exemption for RBI employees under the Scheme.

The Chief Commissioner of Income Tax directed the Commissioner to dispose of the petitioner's rectification application, which had not been done by the time of the hearing. Both parties agreed that the issue stood covered in favor of the petitioner by a previous court order. The Revenue Counsel stated that upon filing a revised return of income, the revenue would process the refund due to the petitioner.

Considering the age of the matter and the petitioner being a retired citizen, the court directed the petitioner to file a revised return of income within two weeks. The revenue was instructed to dispose of the petitioner's claim for refund within two weeks of receiving the revised return. The petition was disposed of with these directions, and no costs were awarded.

In conclusion, the judgment addressed the petitioner's claim for refund of TDS under the RBI Scheme, the delay in processing the rectification application, and the directive for the revenue to grant the refund upon the filing of a revised return within a specified timeline.