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December 2025

Refund — Rejection of application on the ground that request can be made only through TRACES portal and further there is no provision to adjust outstanding demand against refund on TRACES portal — Unjustified — Income-tax authorities bound to refund the amount without any formalities to be completed by the assessee — Non-functionality of portal cannot be the ground for denying the refund statutorily allowed to the assessee — AO directed to either grant refund or set-off the demand payable against the refund.

By Keshav Bhujle | Ritu Punjabi, Advocates
Reading Time 4 mins

51. (2025) 345 CTR 99 (MP)

Birla Corporation vs. Principal CIT

F. Ys. 2009-10 and 2011-12: Date of order 18/09/2024

Ss. 220, 240 and 243 of ITA 1961

Refund — Rejection of application on the ground that request can be made only through TRACES portal and further there is no provision to adjust outstanding demand against refund on TRACES portal — Unjustified — Income-tax authorities bound to refund the amount without any formalities to be completed by the assessee — Non-functionality of portal cannot be the ground for denying the refund statutorily allowed to the assessee — AO directed to either grant refund or set-off the demand payable against the refund.

Proceedings u/s. 201/201(1A) were initiated for the A.Ys. 2009-10 to 2011-12 and aggregate tax liability (including interest) of more than r12 crores was determined to be payable by the assessee.

The assessee’s appeal before the CIT(A) was dismissed and the order of the Assessing Officer was confirmed. The assessee filed further appeal before the Tribunal. The Tribunal set-aside the order and remanded the matter back to the Assessing Officer.

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