MADHYA PRADESH HIGH COURT: NON-FUNCTIONALITY OF TRACES PORTAL CAN'T BE GROUND TO DENY BENEFIT OF STATUTORY RIGHT TO ASSESSEE [INCOME TAX]

The Madhya Pradesh High Court in the case Birla Corporation Limited v. Principal Commissioner of Income Tax (It And Tp) And Others observed and has made it clear that non-functionality of Income Tax Department's TRACES Portal cannot be grounds for denying the benefit arising to an assessee under statutory provisions of the Income Tax Act, 1961.

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The Division bench comprising of Justice Vivek Rusia and Justice Anuradha Shukla in the case observed and has held that an assessee' TDS refund cannot be denied which being merely on the ground that functionality of 'adjustment of refund' against outstanding demand made by the Department is not presently available at TRACES.

The court observed that the Portal (TDS Reconciliation Analysis and Correction Enabling System) has been created in order to 'facilitate' the enforcement of rights and discharge of duties of stakeholders, not to create hurdles.