Communication recd with Subject line "Communication on Arrear Demand" is in response to recent move by the CA fraternity against adjustment of very old demands agst refund due of Asst Yr 09-10 / 10-11.
Various associations had raised their voices agst such kind of wrong adj. by CPC without knowing genuineness / existance of such demands. CPC Authorities incl. Commr. (CPC) has replied in defence that they have provided training to the Jurisdictional ITOs to upload data relating to Old Outstanding Demands from their DC Register. ITOs have uploaded the data but without taking into account any pending rectification application & its processing. So CPC had no choice then to adjust said outstanding demands against refund dues eventhough wrong demands.
When any assessee receives Intimation u/s 143(1) as per which Refund receivable is adjusted against any old outstanding demand, pls check the records pertaining to that asst yr. to verify whether demand raised/adjusted is correct or not. As per Intimation if they say AY 2008 that means Demand adj pertains to Asst Yr. 2008-09 (i.e. yr end 31.03.2008).
If as per the record of the assessee demand is correct but said demand has already been paid then one can write letter for rectification to the Jursidictional ITOs (not to CPC, Banglore) & claim refund for that Asst Yr (i.e. for Asst Yr 2008-09).
In most cases, old demands relates to pending rectifications. In that case, give reminder to rectify & request refund of demand wrongly adjusted. Local Assessing Officer have issued refunds in many cases of the similar nature & they are bound to do it.
Communication recd from CPC with this subject line is just to clarify their stand as who will rectify the wrong adjustment of demand so that no confusion regarding procedure to be followed in such cases.
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