Refund

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2013 Dear Sir,
In one of my case one entry was unmatched in form 26as in AY 2011-12. And Cpc made the whole tds as zero. I made 4 attempts rectification, but result was same.
Now in the month of August 2013, cpc has issued the refund.

I am wondering that what have inspired cpc to issue refund.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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08 August 2013 The dedication which you have shown has impressed them.
.
The reason behind ignoring the request thrice may be many.... some of them-
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- They may not liked in the manner you have presented the reasons in RR.
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-They would have thought that you should not waste the money after getting the refund and utilising the same in paying your self assessment tax or advance tax.
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-They are the unquestionable authority to issue the refunds.
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-There is no penalty on them for Rs 200/- per day U/s 234-F.
.

Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2013 Whether it is the effect of High Court decision regarding tds mismatch issued in March 2013?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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09 August 2013 Delhi High Court issued 7 mandamus regarding allowing credit of TDS to the assessee. One of them being that credit shall be allowed to the assessee if he furnishes proof of deduction of TDS.

Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2013 In case of efiling proof of tds deduction should be submit at local office or it should forwarded to cpc by post.

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
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22 July 2025 In this case, the refund issued by CPC (Centralized Processing Center) despite previous rectification attempts could be influenced by a few factors:

1. Delhi High Court Judgment on TDS Mismatch (March 2013)
The Delhi High Court's decision regarding TDS mismatch, which mandates that TDS credit should be allowed if the assessee can prove the deduction (e.g., with valid documents), likely influenced the CPC's decision. This judgment, as you mentioned, instructed that credit should be granted to the taxpayer if the TDS was actually deducted and can be substantiated, even in cases of mismatched or unmatched TDS details.

2. CPC’s Review Process
Unmatched Entries: Often, mismatched TDS entries in Form 26AS or discrepancies between TDS return and the tax records can cause issues in processing refunds. However, CPC typically undertakes a more manual review or reevaluation after multiple rectification requests. In this instance, CPC may have reconsidered the issue and decided to issue the refund based on a reassessment of the TDS deduction.

CPC’s Discretion: The CPC may have had an internal check or an automatic update that corrected the mismatch or found that the original entry was valid, leading to the release of the refund. Sometimes, after multiple rectification requests, the system might process refunds if they find no further discrepancies.

3. Rectification Attempts
While you made multiple rectification attempts, it’s possible that new information or updated records were added to the system in subsequent months, triggering the refund issue. The rectification process might have been delayed, and CPC could have eventually completed their review of the tax records, which resulted in the refund.

4. CPC's Automated Systems
The automated systems at CPC could also be behind the refund issuance, especially if there were system updates that allowed it to process the refund. It’s also possible that the issue was resolved by updating TDS details automatically from the TDS database of the deductor (if there were corrections made by the deductor or after revalidation).

Submission of Proof of TDS Deduction:
In case you need to submit proof of TDS deduction to the CPC for future discrepancies or to ensure that credits are given correctly:

No Need to Submit Proof with CPC: Typically, the proof of TDS deduction (Form 16/16A or the challan details) does not need to be submitted to CPC directly. However, it is crucial to ensure that this information is updated correctly in Form 26AS through the TDS Return filing process by the deductor.

Submission at Local Office: In case of issues or discrepancies that cannot be resolved through the online system, you may have to approach the local Income Tax office. However, this is generally not required unless specifically instructed by the CPC.

If you are still facing issues or have any unresolved discrepancies in your TDS records, it's a good idea to keep track of:

Form 26AS: Ensure that all entries are accurate.

Rectification Requests: If you make further rectification, try providing any additional supporting documentation that proves TDS was deducted correctly.

Correspondence with CPC: If required, engage in direct communication with CPC for clarification.

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