Issue Tax refund for AY 2011-12 without further delay

vswami says:

To share own view:
This is the latest in the series of circulars through which the CBDT has , going that extra mile, been good enough to once again urge the authorities down the line not to delay any further but expeditiously settle all the refund claims for the assessment year 2011-12.
The question of interest payable by the government on such refunds has been left open. However, even at the time of issuing the refunds, the AOs (or the CPC in respect of e’filed returns), it is expected, should take care of interest due and include it; as, otherwise, refundees would be subjected to a fresh spate of hassle and hardship in having to take up and pursue separately such claim . to the end of grant of interest.
In case of refunds processed by CPC, the fear is that, unless the system has in place the interest factor in-built appropriately, refund granted may not have interest included automatically.
In its recent land mark judgment (PIL), the Delhi HC, it is noted, has, in more than one context, made it quite clear that many of the problems could have been avoided had the AO followed, besides others, the rules book in regard to the mandates of , besides others, section 143 (1). In all such cases, it is apprehended, interest due may not be readily granted, unless the scheme of the related provisions, inter alia, section 244 A, rw section 143 (1), are kept in full view; that is, closely and harmoniously read and properly understood.
According to one’s understanding, if so done, entitlement to interest cannot be denied or disputed, particularly in those cases where the mandate of Intimation under section 143 (1) was not complied with, and the time limit laid down had expired.If perceptively considered and strictly construed, in such cases, the residuary provision of clause (b) of sub-section (1) of section 244A,- not clause (a), more particularly, the proviso thereto,-it could be urged, would come into play and interest to be granted accordingly.

Suggest that, taxpayers / their advising professionals should make an in-depth study of the aforesaid aspect, and if so convinced, have the claim for interest pursued, if not granted along with refund of excess tax.

September 26, 2013 at 12:02 pm

0 Comments

vswami says:

To share own view:
This is the latest in the series of circulars through which the CBDT has , going that extra mile, been good enough to once again urge the authorities down the line not to delay any further but expeditiously settle all the refund claims for the assessment year 2011-12.
The question of interest payable by the government on such refunds has been left open. However, even at the time of issuing the refunds, the AOs (or the CPC in respect of e’filed returns), it is expected, should take care of interest due and include it; as, otherwise, refundees would be subjected to a fresh spate of hassle and hardship in having to take up and pursue separately such claim . to the end of grant of interest.
In case of refunds processed by CPC, the fear is that, unless the system has in place the interest factor in-built appropriately, refund granted may not have interest included automatically.
In its recent land mark judgment (PIL), the Delhi HC, it is noted, has, in more than one context, made it quite clear that many of the problems could have been avoided had the AO followed, besides others, the rules book in regard to the mandates of , besides others, section 143 (1). In all such cases, it is apprehended, interest due may not be readily granted, unless the scheme of the related provisions, inter alia, section 244 A, rw section 143 (1), are kept in full view; that is, closely and harmoniously read and properly understood.
According to one’s understanding, if so done, entitlement to interest cannot be denied or disputed, particularly in those cases where the mandate of Intimation under section 143 (1) was not complied with, and the time limit laid down had expired.If perceptively considered and strictly construed, in such cases, the residuary provision of clause (b) of sub-section (1) of section 244A,- not clause (a), more particularly, the proviso thereto,-it could be urged, would come into play and interest to be granted accordingly.

Suggest that, taxpayers / their advising professionals should make an in-depth study of the aforesaid aspect, and if so convinced, have the claim for interest pursued, if not granted along with refund of excess tax.


September 26, 2013 at 12:02 pm
R,L,Garg says:

such directions issued from time to time has no effect on the Assessing Officer. They do not bother for such instructions unless CBDT fix responsibility, accountability and penalty of sthe defaulting officers


September 24, 2013 at 11:31 am