Bombay High Court Raises Concerns Over Stuck Refunds at CPC, Demands Explanation

The Bombay High Court has raised concerns over refund delays at the Centralized Processing Center (CPC) and has demanded an explanation for the situation. In response to a writ petition challenging the non-processing of a refund despite a rectification order that revised the total income to match the income declared by the Assessee, the High Court has issued a notice. The court has directed the Director of Income Tax at the CPC in Bangalore to file an affidavit clarifying why no action has been taken following the rectification order, when the refund amount will be paid, and which officer will be responsible for the loss of public money due to the payment of interest on the refund to the Assessee.

The High Court expressed its dissatisfaction with the Revenue’s Counsel, noting that they seemed “embarrassed” as they were unable to provide information on the status of the refund order, as the CPC had not even responded to the Assessing Officer. Additionally, the court took into account the Assessee’s submission that their representative had been meeting with the Assessing Officer, who expressed helplessness in resolving the issue.

The next hearing in this matter is scheduled for July 17, 2023. The case is titled CDS Construction Company (P) Ltd. v. PCIT, Mumbai and Others, and the order was issued on July 4, 2023, by the Bombay High Court.

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