ITBA — ITR Processing Instruction No. 14
DIRECTORATE OF INCOME TAX (SYSTEMS)
ARA Center, Ground Floor, E-2 Jhandewalan Extension,
New Delhi — 110055
F. No. DGIT(S)/ITBA/Instructions/Processing/2021-22/
All Principal Chief Commissioners of Income Tax/ CCsIT (By Name),
All Principal Director Generals of Income Tax/ DGsIT (By Name),
All Principal Commissioners of Income Tax/ CsIT/ CsIT (Admin & TPS/ CO) (By Name),
All Principal Directors of Income Tax/ DsIT (By Name),
Subject: – Workflow in ITBA for Withholding of Refund under Sec. 241A of the I. T. Act’ 1961 or Release of Refund determined while Processing of Returns of Income for the cases selected for Scrutiny — Regarding
Reference:- ITBA ITR Processing Instruction No. 5, dated 14-12-2018
This is in reference to the subject mentioned above. For a given PAN and AY, if a refund is determined by CPC-ITR while processing of a return of income, and the return of income is already selected for scrutiny, then the AO is required to provide response for withholding of the refund u/s 241A or release of the same to CPC-ITR. Based on AO’s response, further action is taken by CPC-ITR. The process to be followed in ITBA for withholding of refund u/s 241A or release of refund for the cases selected in scrutiny was mentioned in ITBA ITR Processing Instruction No. 5, dated 14-12-2018. With introduction of Faceless Assessment Scheme, there has been change in workflow for withholding of refund u/s 241A or release of refund for the cases under scrutiny with NaFAC. In partial modification of ITBA ITR Processing Instruction No. 5 dated 14-12-2018, the workflow in ITBA for “Withholding of Refund under Sec. 241A” or “Release of Refund” determined while processing of returns of income for the cases selected for scrutiny for faceless and non-faceless (central/ international taxation/ JAOs) users is as follows.
2. “Withholding of Refund u/s 241A” or “Release of Refund” where corresponding scrutiny case is with “non-faceless (Central/ International taxation/ JAO)” charge:
2.1 The Step-by-step process in ITBA is as under:
Steps for AO:
Scenario 1: Refund is to he Withheld u/s 241A:-
Steps for AO:
Steps for Range Head:
Steps for PCIT:
Note:(i) If it has been decided by the PCIT that the case is not fit for withholding of refund u/s 241A, then the proposal has to be sent back (click on “send back/ reject”) with relevant remarks. After that, AO has to cancel the work item from Refund Banker Module and follow the process of refund release. The Para No. 3(A)(i)(e) of ITBA ITR Processing Instruction No. 5 dated 14-12-2018 may be treated as modified in this regard.
(ii) If the POT send back only for seeking clarification, then also he has to use the same button “send back/ reject” with applicable/ appropriate remarks.
(iii) In view of the above, AO has two options — either to cancel whole work-item altogether [scenario (i) J, or to give clarification as desired by the PCIT [scenario
Scenario 2: Refund is to be released, and the refund amount is less than Rs. 100000:
Steps for AO:
Scenario 3: Refund is to be released, and the refund amount is equal to or more than V00000, then Range head approval is required: –
Steps for AO:
Steps for Range Head:
3. “Withholding of Refund u/s 241A” or “Release of Refund” where corresponding scrutiny case is with “faceless” charge:
3.1 As per SOP dated 19.11.2020 issued by the NaFAC (NeAC):
3.2 The AU has to take approval of PCIT (AU) for withholding of refund u/s 241A offline (i.e., outside ITBA) and then intimate JAO online (i.e. through ITBA – as mentioned in steps below) for withholding of refund u/s 241A or issue of refund determined in processing u/s 143(1).
3.3 The step-by step process in I IBA is as follows.
Step-1: User – ReFAC AO: Steps for issuing letter (“Issue Letter”) to JAO by FAU to communicate decision regarding withholding of refund u/s 241A or release of the same
Note: FAU may communicate to JAO “reasons recorded for withholding of refund u/s 241A” and “approval remarks of PCIT(AU)” thereon through “Issue Letter” in “Initiate Other Action” functionality discussed above by writing in the letter itself or through attachment to the letter.
Step-2 : User – ReFAC Raw:
> Send Back: In case any clarification is required, or letter contents is required to be edited through ReFAC AO, ReFAC Range will enter remarks in Workflow Noting and Clicks on Send Back. Child work item will be available to ReFAC AO. ReFAC AO will do the necessary changes or provide clarification and Submit back to ReFAC Range.
> Approve: In case no updates are required, user will be able to approve the generation of Letter in ITBA system. Enter remarks in Workflow Noting. Click on Approve button. The Letter generation request is approved by ReFAC Range user and child work item will be merged with the main Assessment work item for ReFAC AO user to proceed with the generation.
> Entry will be available in Case History Noting screen whenever workflow is sent to/ from ReFAC AO and ReFAC Range users for necessary action.
Step-3 : User – Re FAC AO
Note: If the letter is issued to ITD User, a work item is created in the Faceless Enquiry module for response workflow. The worktime has Subject link as Letter from NeFAC.
Step-4: User – ITD User / JAO
> The Issue Letter report screen opens. Enter the response in free-text area provided and click Save Draft to save the content entered.
> Click on Reload preview to view the preview of the response and then click Generate to generate the letter report/response.
> The generated signed response report is visible in View/Download Notice/Letter/ Order User may click on Download to open the signed document.
Step-5: User – JAO: Once communication regarding withholding of refund u/s 241A or release of refund received by JAO:
i. Go to ITR Processing module > View RRR entries > Enter PAN and AY, Click on search button
ii. Scrutiny Case for which decision is received through Issue letter functionality will be reflected with processing status ‘Pending for refund confirmation by AO’
iii. Select the case and click on ‘View/Proceed to data entry’
iv. On Part A General, under ‘Refund/demand confirmation’ tab, User has to select either ‘YES’ or ‘NO’ in .field “Approval received from ReAC for refund withholding”
v. User is required to generate OTP, click on ‘Generate OTP’, OTP will be received on the registered mobile number of user, enter the same on Field ‘011)’
vi. If user select “YES” on sL no. (iv) above, then ‘withheld refund’ button will be available on screen, on click of ‘withheld refund, case will he shared to CPC for processing and for refund withheld.
vii. If user select “No” on sl. no. (iv) above, then flow for refilnd release will be triggered (same as normal refund flow)
Note: JAO may consider issue of “reasons recorded/ approval remarks/ speaking order/ any other documents” to the assessee for withholding of refund u/s 241A, if they believe that it should be issued considering various High Court decisions or as per law.
4. MIS regarding 241A: Faceless Charges:
A. MIS Reports regarding pendency/Action u/s 241A can be viewed at MIS > Assessment > Data summary reports > Report for action u/s 241A
B. Further MIS Report is bifurcated into two reports
i. Summary report for action u/s 241 A
ii. Detailed report for action u/s 241 A
C. Following fields are available in Summary report for action u/s 241 A
a. No of cases in which action u/s 241A is shown required
b. No of cases in which ReAC AO has intimated about decision of ReAC PCIT u/s 241A
c. No of cases in which refund is withheld u/s241A
d. No of cases in which refund is released
e. No of cases in which action is pending at the end of JAO
D. Following fields are available in Detailed report for action u/s 241 A
b. CCIT Office Name
c. CIT Office Name
d. Range Office Name
e. AO Office Name
f. Email Id of AO
i. Assessee Name
j. Assessee Status
k. Return Filing Mode
l. Form Type
m. Return Section
n. Returned Income
p. Date on which ReAC AO has intimated about decision u/s 241A
q. Whether Refund Withheld or released by the JAO
r. Date of action by JAO
E. MIS Reports can be viewed by following user:
5. Training materials including user manual, help content and frequently asked questions (FAQs) are available on the ITBA Portal → ITBA Help Guide → Processing. Users can refer these in case any issue arises.
6. Users may also contact help desk.
a. URL of help-desk: http://itbahelpdesk.incometax.net
b. Help-desk contact number: 0120-4836850 and 0120-2811200
c. Email ID: email@example.com
d. Help-desk Timings: 8.30 AM —7.30 PM (Monday to Friday).
This issues with prior approval of the DGIT (Systems), Delhi.
(Ashim Kumar Modi)
Commissioner of Income Tax (ITBA),
Directorate of Income-tax (Systems), Delhi
1. The P.P.S. to Chairman, Member (Administration and Faceless Schemes(s))/ Member (Audit and Judicial)/ Member (Income Tax and Revenue)/ Member (Investigation)/ Member (Legislation and Systems)/ Member (Tax Payer Services), CBDT for information.
2. P.S. to DGIT (Systems), Delhi.
3. The Web Manager for irsofficersonline.gov.in website with a request to upload the instruction on the website.
4. ITBA Publisher (firstname.lastname@example.org) for https://itba.incometax.gov.in portal with a request to upload the instruction on the ITBA Portal (Help Guide).