The Karnataka State Chartered Accountants Association(KSCAA) gives Representation on delay in issue of refund under provisions of Income Tax Act 1961.
Reetu | Jun 16, 2023 |
CA Association gives Representation on delay in issue of refund under provisions of Income Tax Act 1961
The Karnataka State Chartered Accountants Association (R) (in short ‘KSCAA‘) is an association of Chartered Accountants, registered under the Karnataka Societies Registration Act, in the year 1957. In the past, we have written to various authorities many times populating various issues, challenges and hardships being faced by the business community, while also suggesting possible solutions to the same.
We wish to represent the grievances of taxpayers with regard to the inordinate delay in the processing/obtaining the refunds pursuant to the conclusion of the assessment proceedings, reassessment proceedings, rectification proceedings, the disputed settlement scheme Vivad Se Vishwas (VSV), and Order Giving Effect (OGE) passed pursuant to the orders of the Appellate authorities.
1. The process of obtaining the refund pursuant to the above is riddled with a lot of complexity and lack of transparency.
2. The NSDL website that displays the status of a refund is not giving a concrete update. Often, the Assessee is presented with a very vague/default response on the status of the refund, usually directing the Assessee to approach the jurisdictional assessing officer.
3. In most cases, we have also noticed that the attempt to disperse the refund has failed due to some error with bank validation though the same has been attended to by the taxpayers. Further, there are no clear guidelines with respect to the validation of bank accounts leading to a lot of confusion and inefficient use of resources. We implore your goodself to direct the authorities to provide a specific reason for the failed attempt to enable the taxpayers to attend the same.
4. The refunds pursuant to the returns filed u/s 119(2)(b) are not issued as we have been told that the Revenue Authorities do not get proper alerts from CPC upon filing said returns. The same, in most cases, are time-barred for processing thereby depriving the Assessees of a genuine refund;
5. We are given to understand that the CPC is implementing robust CPC 2.0 and the same has also caused a delay in the issue of refund. In the meantime, we implore your goodself to make appropriate arrangements to disburse refunds.
We request you streamline the above process of issuing the refund by making it seamless and faceless, especially in cases where the assessee has obtained favourable orders from the Appellate Authorities. Disposal of the same in time bound manner will also contribute to the objective of speedy justice and ease of doing justice. The delay in issuing the refund even long after the receipt of favourable order from the Appellate Authorities will frustrate the legal remedy provided under the Act.
The Dispute Settlement Scheme (VSV) was brought in to reduce the dispute and ensure certainty to the assessee. Even after various years of dispute settlement, the assessing officers have not passed OGE to VSVS orders/forms and thereby delaying the processing of refund due thereunder.
The delay in nullifying the demand and issuing the refund has resulted in a multiplicity of litigation, leading to an adjustment of refund of subsequent years against the demand of previous years. This is also causing a burden to the exchequer as it involves a refund of the amount due to the assessee along with interest.
1. While the refund process, for the income tax returns that are been filed, has been streamlined by a slew of measures taken to process the returns at a record speed, we also consider the same for the above petitions.
2. We request you to consider measures to make the procedure of refund without any human intervention by bringing it under a faceless regime. This can be attained when proceedings like rectification and OGE are also brought under the faceless regime.
For Official Representation Download PDF Given Below:
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