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2020 (6) TMI 107 - HC - Income TaxIncome tax Refund claim - failure to issue refund upon processing of return u/s 143(1) - HELD THAT - Though vide Press Release dated 8th April, 2020 issued by the Department of Revenue, Ministry of Finance, Government due to onset of the Covid-19 virus has directed release of all pending income tax refunds up to ₹ 5 lakh with immediate effect, yet petitioner s refund remains unprocessed. Notice issued. List the matter on 24th June, 2020.
Issues:
Petition seeking direction for income tax refund for Assessment Year 2018-19. Analysis: The High Court of Delhi, comprising Hon'ble Mr. Justice Manmohan and Hon'ble Mr. Justice Sanjeev Narula, considered a writ petition filed under Article 226 of the Constitution. The petition requested a direction to the respondents to issue an income tax refund of ?1,02,350 for the Assessment Year 2018-19. The petitioner's counsel highlighted that despite the Department of Revenue's Press Release directing the release of pending income tax refunds up to ?5 lakh due to the Covid-19 situation, the petitioner's refund of ?1,02,350 remained unprocessed. The petitioner's legitimate refund was being withheld for the adjustment of a small sum of ?360, despite repeated reminders and grievances raised over twenty-one months. The counsel argued that the respondents' inaction in processing and issuing the pending refund was in violation of Section 143(1) of the Income Tax Act, 1961, and the Citizen Charter, 2014 issued by the CBDT, which mandates the processing and issuance of refunds within six months from the filing of the return. The Court issued notice to the respondents, represented by Mr. Ruchir Bhatia, the learned senior Standing Counsel, who accepted the notice on their behalf. Mr. Bhatia was directed to examine the matter personally and file a status report within two weeks. The Court scheduled the next hearing for 24th June 2020 and ordered the uploading of the order on the website immediately. Additionally, a copy of the order was to be forwarded to the petitioner's counsel via email. The Court's decision allowed the petitioner's application for exemption, subject to all just exceptions, emphasizing the urgency expressed in the petition and the need for a prompt resolution of the issue regarding the withheld income tax refund for the specified Assessment Year.
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