Disposal of refund claims. - Income Tax - 1647/CBDT

INSTRUCTION NO. 1647/CBDT Dated: September 11, 1985 The Board has been from time to time stressing that the refund vouchers should invariably accompany orders giving rise to the refund and the IACs (Assessment)/ITOs should properly maintain Register of Receipt of Refund Application in prescribed format in order to enable them to dispose of such claims promptly. Attention in particular is invited to the following letters/Instructions issued by the Board on the subject:- (i)Boards letter F.No.5/6/67-ITA, dated 30th March 1967 (ii)Boards letter F.No.5/31/68-ITA-III dated 24th September, 1968. (iii)Boards letter F.No.5/129/69-ITA-II, dated 5th November, 1969. (iv)Boards Instructions No.179 dated 6th June 1970(F.No.226/2/74-ITA-II) (V)Boards Instruction No.653 dated 21st January, 1974 (F.No.212/2/74-ITA-II). (VI)Boards Instruction No.912 dated 14th January 1976 (F.No.225/130/75-ITA-II). 2. It is a matter of concern for the Board that a feeling continues to persist among the taxpayers that the refunds are not granted promptly and that the refund vouchers are not being sent in most of the cases alongwith the orders giving rise to refund. Also complaints are being received by the Board in this regard. 3. The Board would therefore again like to emphasise that the claims of refund should be disposed off promptly and the refund vouchers should invariably accompany the orders giving rise to the refund. 4. The Board also desires that steps may be taken to carry out surprise inspections by the CsIT/IACs to find out whether refunds are granted promptly and interest is paid in cases of delayed refunds. The CsIT/IACs are directed to ensure elimination of delay in the grant of refunds and to see that specific cases coming to their notice in the course of surprise inspections or regular inspections or as a result of complaint, are carefully and promptly investigated. The IACs should inspect this aspect of work in each ITOs ward once a month and in moffusil charges whenever they visit those circles. If they find that some refunds remain unissued they should see that those are issued then and there and obtain the written explanations of the concerned officials. With a view to preventing lapses, necessary action should be taken by streamlining the functioning of the ward/circle and in appropriate cases, suitable deterrent punishment to the erring officials should also be awarded. 5. The Inspection Division of the Board has been asked to specifically monitor compliance in this regard while inspecting the work of Income-tax circles and report to the Chairman for directing appropriate disciplinary proceedings both against officers and Assistant Commissioners in cases where Boards Instructions have not been followed. 6. The above instructions may please be brought to the notice of the officials working in your charge.