New Delhi: Taxpayers who filed their Income Tax Return (ITR) on time but missed the e-Verification deadline have received an important relief from the Delhi Income Tax Appellate Tribunal (ITAT).
The Tribunal ruled that a genuine tax refund cannot be denied only because e-Verification was delayed, especially when the Income Tax Department has already accepted the delay.
What Was the Case?
The case involved a taxpayer who filed his ITR for the assessment year 2015-16 within the prescribed due date. After claiming all eligible deductions and adjusting losses, his total tax liability became zero.
Since tax had already been deducted at source (TDS), he became eligible for a refund of around ₹17.08 lakh. However, he could not complete the mandatory e-Verification within the required time.
Reason Behind the Delay
The taxpayer informed the authorities that his 83-year-old father was seriously ill and needed frequent hospital visits. Because of this family emergency, he missed the e-Verification deadline.
He later requested the Central Processing Centre (CPC) to condone the delay. The CPC accepted his request and allowed the delayed e-Verification. He then completed the process successfully.
Why Did the Matter Reach ITAT?
Even after the delay was officially condoned, the Income Tax Department did not release the refund.
The taxpayer filed a rectification request, but it was rejected. He then approached the Delhi ITAT for relief.
What Did the Tribunal Say?
The ITAT ruled in favour of the taxpayer. It said that once the CPC had accepted the delayed e-Verification, the department could not refuse the refund for the same reason.
The Tribunal also noted that the taxpayer’s TDS had already been credited to the government, all records were available with the department, and there was no pending tax liability.
Referring to Article 265 of the Constitution, the ITAT said the government cannot retain money that is not legally payable as tax merely because of a technical delay.
What Should Taxpayers Do?
Taxpayers should complete e-Verification soon after filing their ITR to avoid delays in processing. If a genuine reason prevents timely verification, they should immediately apply to the CPC for condonation of delay. If the request is accepted, this ruling could support their claim for a legitimate tax refund.
