CBDT - Restriction on Issuance of Manual Refunds by Assessing Officers
THE functionalities for passing orders u/s 143(1)(a)/143(3)/154/appeal effects/ penalty etc. exist on the system and, progressively, AOs are mostly issuing orders on the system from AY 2011-12 onwards.
The CBDT has repeatedly instructed that in all cases orders must be passed on the system. This has also been stressed in the Central Action Plan for each year. Further, all charges including LTUs and Central Charges are now covered by Refund Banker scheme.
However, instances continue to come to the notice of the Board where the Assessing Officers have issued manual refunds even in cases, which have been processed on AST.
CBDT has decided that henceforth no manual refund should be issued in a case which has been processed on AST. In exceptional cases, manual refunds may be issued with the following safeguards:
i. It is mandatory for AO to take Approval by Range head for refunds upto Rs. 1 lakh and approval by CIT for refund above Rs. 1 lakh and record reasons as to why manual refund was necessary.
ii. Mandatory quoting of PAN, AY and Bank account number on the Cheque.
iii. No manual refund will be permitted if a prior manual refund for same PAN, AY and amount has already been encashed.
CBDT AST Instruction No. 136 in DGIT(S)/DIT(S)-3/AST/Manual Refunds/85/2015-16., Dated July 10, 2015