After processing of the return we have received a failure of the credit of refund proceeds. As per communication received from CPC- Bangalore the said failure was on account of erroneous IFSC code. On verification of the IFSC code mentioned in the ITR and the xml file uploaded whilst filing the return we found no error.
The matter further interested us and we sought clarification from CPC-Bangalore. On inquiry with CPC Bangalore on the toll free number provided, we were informed that the system at CPC accepts the IFSC code only in upper case. Our refund was rejected for the mere reason that we had mentioned the IFSC in the lower case in our ITR. However we have filed for re-issue of refund request with the necessary changes
On further investigation we found that the Income Tax department does not publicises the usage of ONLY upper case characters in keying in IFSC codes while filing of returns. Further no banks in India make distinction while transferring money as to whether the information punched in is in upper case or lower case.
We studied the “Report of the Technical Committee to Examine Uniform Routing Code and Account Number Structure