Rs 5.31 lakh income tax refund denied as taxpayer did not claim it in the original ITR; he approaches ITAT Delhi and wins the case to get tax refund with interest

When a taxpayer from Jorbagh, New Delhi, did not file his original income tax return (ITR) by the due date for AY 2019-2020, he received a tax notice from the Income Tax Department. The Income Tax Department sent this notice as they got information from their Insight Portal that the taxpayer carried out some high-value transactions but filed no Income Tax Return (ITR).

In technical terms, a Section 148 tax notice was sent on March 27, 2023. In response to this notice, the taxpayer filed an ITR declaring a business loss of Rs 1.38 crore and claimed a Rs 5.31 lakh tax refund from the TDS that was deducted.