Non-Functionality of TRACES Portal not Ground to Deny Benefits: Madhya Pradesh HC directs Demand Adjustment against Birla Corporation’s pending Refunds

The Madhya Pradesh High Court has ruled that the non-functionality of the Income Tax Department’s TRACES Portal cannot be used as a justification to deny benefits to an assessee. The court directed the adjustment of demands against Birla Corporation’s pending refunds, emphasizing that the online portal is meant to facilitate stakeholders, not create hurdles. The division bench, comprising Justices Vivek Rusia and Anuradha Shukla, highlighted that statutory duties and rights should not be impeded by technical issues. This decision reinforces the principle that taxpayers should not be penalized for system failures and ensures that they receive the benefits they are entitled to under the law.