2021 (1) TMI 487 - HC - Income Tax

Grant of refund due to the petitioner alongwith interest u/s 244A - petitioner seeks a direction to the respondents, to process the return of income of the petitioner for the assessment year 2019-20 under section 143(1) - HELD THAT - As grievance of the petitioner is now within a narrow compass matter is with respondent No.5 which will intimate the petitioner regarding processing and release of refund since processing of the income tax return for the assessment year 2019-20 has been completed. It is also seen that the said respondents have admitted that certain amount of refund is due to the petitioner processing of which at the level of respondent No.2 is complete after resolution of all technical issues. Having heard learned counsel for the parties and having considered the provisions of section 143(1) of the Act, we direct respondent No.5 to complete the processing of the refund claim of the petitioner and thereafter, release the due refund amount to the petitioner alongwith applicable interest in accordance with law within a period of two weeks from the date of receipt of a copy of this order.Writ petition is accordingly allowed to the above extent.

Summary

Issues:
Petitioner seeks direction for processing income tax return and refund for assessment year 2019-20 under section 143(1) of the Income Tax Act, 1961.

Analysis:
The petitioner, a public limited company, filed its return of income for the assessment year 2019-20 online, declaring total income and tax payable. Claimed credit for TDS and TCS resulted in a refund claim. The return was transferred to respondent No.2 for processing, but delays ensued due to technical errors. The petitioner, not receiving any intimation under section 143(1) of the Act, filed a writ petition seeking relief.

The respondent, in response, stated that the return was uploaded electronically and processed after technical issues were resolved. The processing was completed, but a technical error with OTP verification delayed the refund process. The technical issues were resolved, and the refund processing completed at the jurisdictional level. The case was sent back to CPC for refund release.

The court, after hearing both parties and considering section 143(1) of the Act, directed respondent No.5 to complete the processing of the refund claim and release the due refund amount with applicable interest within two weeks. The writ petition was allowed with no costs imposed.

This judgment clarifies the procedural steps and responsibilities in processing income tax returns and refunds under the Income Tax Act, emphasizing the timely completion of refund processing once technical issues are resolved.