Form No. 4 refund processing requires timely credit despite statutory interest exclusion under the settlement scheme.

Refunds determined under Form No. 4 under the Direct Tax Vivad Se Vishwas Scheme, 2024 require an effective processing mechanism and timely credit. The stated absence of a processing module and engagement in time-barring proceedings were noted as inadequate explanations for prolonged non-credit. Although the Scheme excludes statutory interest under the Income-tax Act, that exclusion does not justify administrative delay. Further time was granted, and the matter was listed for a later date; the order was also sent to CBDT for verification and appropriate systemic action on recurring refund delays.

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Issues: Whether delay in releasing the refund determined under Form No. 4 under the Direct Tax Vivad Se Vishwas Scheme, 2024 warranted further directions concerning payment and systemic refund processing.

Analysis: The stated non-availability of the processing module and engagement in time-barring proceedings did not adequately explain the prolonged non-credit of the refund. Although the Scheme excludes statutory interest under Section 244A of the Income-tax Act, 1961, that exclusion does not justify administrative delay. The matter was considered significant in view of recurring refund-delay cases and the need for a functional mechanism following issuance of Form No. 4.

Outcome: Further time was granted and the matter was listed for 06.08.2026; a copy of the order was directed to be sent to the CBDT for verification and appropriate systemic action.

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