Court Orders Timely Refund Processing and Interest Payment

The court directed respondent No.5 to complete processing the refund claim and release the due refund amount with applicable interest within two weeks. The writ petition was allowed with no costs imposed, clarifying procedural steps and responsibilities in processing income tax returns and refunds under the Income Tax Act, emphasizing timely completion of refund processing post-resolution of technical issues.

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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.

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