Delay by Assessing Officer in issuing Order giving effect to Orders of higher Appellate authorities, and also delay in issuing refunds arising out of such Order


It has been experienced that when any order of higher appellate authorities is received, and moreover when the order is in favour of the assessee, the Assessing officer delays in issuing the Order giving effect to such appellate orders. Due to this delay, the refund arising from such appellate orders also gets delayed.

Secondly, it is also observed that in most of the cases, the issuing of Refund Cheques/ Warrants are purposefully delayed and the interest on such refunds, as per the provisions of the Income-tax Act, 1961 is calculated only up to the date of issue of Assessment order / Order Giving effects to appellate orders. This results in, assessee being deprived of interest on the delayed refunds and also assessee does not earn any interest on the Interest on Refunds for the period of such delay of issuing of refund warrants by the Assessing officers.


It is suggested that time limits for issuing the Order giving effects and Refund Orders should be stipulated in the Act. If the order provides for fresh modification of the assessment, the same should be given effect to within 12 months from the end of the month in which it is received by the Commissioner. Also the Interest on Refunds should be calculated up to the date of actual issuing of Refund warrants and not only up to the date of granting the refund/date of Order (as per the existing provisions of the Act)


Source-  ICAI Pre-Budget Memorandum–2018 (Direct Taxes and International Tax)

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