Refund Allowed even if e-verifed income tax return after 30 days

By | September 13, 2026
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Refund Allowed even if e-verifed income tax return after 30 days

This is an order of the Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘E’ in ITA No. 7471/Del/2025 (Gurcharan Singh Bhatia vs. ACIT, Circle-46(1), New Delhi) for Assessment Year 2015–16, pronounced on June 16, 2026.
Case Overview
  • Issue: Denial of a TDS refund of ₹17,08,200/- on the ground that the assessee failed to e-verify the income tax return within the prescribed period.
  • Background:
    • The assessee e-filed a Nil return under Section 139(1) on September 3, 2015, claiming a TDS refund on rental income.
    • Due to his father’s critical illness, e-verification was delayed until February 16, 2018, when a condonation request was submitted and accepted by CPC via Aadhaar OTP.
    • Despite acceptance by CPC, the return remained unprocessed under Section 143(1), and no refund was issued.
    • The assessee filed a Section 154 rectification application, which the Assessing Officer (ACIT) rejected.
    • The JCIT(Appeals), Chennai dismissed the appeal, holding that an unverified return within the due date rendered the return invalid/unfiled, and only the JAO under Section 119(2)(b) or CPC could condone delay.
ITAT Ruling & Key Findings
  • Constitutional Violation (Article 265): The Tribunal held that tax can only be levied and collected under the authority of law. Denying a legitimate refund of tax deducted at source merely on technical grounds amounts to unjust enrichment by the Revenue.
  • Condonation Already Granted: The delay in e-verification had a sufficient cause and was already accepted by CPC via condonation.
  • Precedents Relied Upon:
    • K. Nagesh vs. ACIT (Karnataka High Court): Retaining tax paid without a valid assessment/self-assessment violates Article 265, and excess tax must be refunded.
    • S. R. Koshti vs. CIT (Gujarat High Court): Revenue authorities must assist the assessee and not take technical pleas to deny lawful rights.
  • Final Verdict: The order of the JCIT(A) was set aside, the assessee’s appeal was allowed, and the AO/CPC was directed to take necessary steps to issue the refund.