Why ITR not processing

Pls inform me whether this includes itr not processed also

@ Mayank - First of all, it is not a RBI circular.

With regard to your first question, in my opinion, the circular of IT Dept is only applicable to those cases where ITR was already processed (before the date of the circular) and refund (less than Rs. 5 lakh) was pending to be credited in the bank account. Hence, if return is pending for assessment where claimed refund is less than 5 lakh, that assessee may not receive instant refund.

With regard to your second query "taxpayers whose refund is more than 5 lakh and still there returns are not processed", as the recent circular does not deal with such situation, the assessee will just have to wait till the return is processed in accordance with the IT rules and regulations.