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Wrong demand raised by deptt in intimation u/s 143 (1)

Nupur Sharma (CA) (426 Points)

26 November 2014

Hi All,

A client has received an intimation under section 143(1) and in that a demand has been raised by the income tax department. Now the amount for which the demand has been raised is the same amount which was deducted as TDS by her employer and then duly deposited to the govt. this amount is being reflected in her Form 26 AS too.However, no credit has been taken by the department for this TDS amount and a demand for this amount plus interest has been raised.

My query is that what should be done in this case? Should a rectification be filed straightaway or just a letter should be written to the AO for rectification of this mistake in the department's records.

Thanks in advance!

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14 Replies

CA Raman Goel (CA) (602 Points)
Replied 26 November 2014

Just filled rectification u/s 154 , your return will be reconsider. (Also check TAN of deducter)

1 Like

Gagan Deep Singh (CHARTERED ACCOUNTANT) (1190 Points)
Replied 26 November 2014

Agreed with Raman Goel you just need to file online rectification u/s 154

1 Like

CA VISHUKANT GOEL (CHARTERED ACCOUNTANT) (88 Points)
Replied 26 November 2014

appeal is also possible u.s 246a

eswar (practice) (79 Points)
Replied 27 November 2014

First check in the tax credit mismatch then u go for further step

1 Like

Rakesh Srivastava (Manager) (30 Points)
Replied 27 November 2014

Dear all what is difference between revision of return and rectification u/s 254

Mihir (Wealth Manager) (5293 Points)
Replied 27 November 2014

If return was filed online, then yes you may file rectification u/s 154 from the incometax website.

Hemanth Pullanikkat (Chartered Accountant) (89 Points)
Replied 27 November 2014

As per section 154 of Income Tax Act 1961

(1)with a view to rectifying any mistake apparent from the record an income tax authority referred to in section 116 may

(b) amend any intimation or deemed intimation under subsection (1) of section 143;

(2)subject to other provisions of this section, the authority concerned

(b) shall make such amendment for rectifying any such mistake which has been bought to its notice by the assessee.

Explanation

In this case income tax authority has committed a mistake by not considering TDS credit, deducted by the employer, deposited to central government and reflected in 26AS. So as per sub clause (b) of subsection (1) of section 154 the income tax authority may make such amendment to the intimation issued u/s 143(1)even if it is brought to the notice of income tax authority by the assessee concerned. so you can file a request before income tax authority for rectifying the intimation, invoking section 154(2)(b), issued by them.You can file the intimation electronically if the original return is filed electronically. other wise you should have to file the request manually.

Sourabh Jain (Credit Manager) (62 Points)
Replied 27 November 2014

Just file online reply to consider As notice u/s 143(3) not received then no need to file any appeal

CA Prateek Garg (CA in Practice) (1444 Points)
Replied 27 November 2014

First of all check whether TDS details entered in ROI are same as in 26AS. If there is any diff then revise the return. If TDS details entered in ROI and reflected in 26AS are same the file rectification request u/s 154

Nupur Sharma (CA) (426 Points)
Replied 28 November 2014

Hi!

I have another question here. A rectification relating to AY 2012-13 however, cannot be filed online if I am right? Since, online returns cannot be generated now for that year? So , in that case, what is the remedy? To file a manual rectification with the AO?

Nupur

1 Like

Hemanth Pullanikkat (Chartered Accountant) (89 Points)
Replied 29 November 2014

As per subsection (7) of section 154 'no amendment under this section shall be made after the expiry of four years from the end of the financial year in which the order sought to be amended was passed'

So first of all please verify the date and year of intimation passed by the income tax authorities.They cant make amendment to the intimation after 4 years from the end of the financial year in which the order was passed.

You can file a request for rectification at any time online. No period of limitation is fixed by the statute for the filing of request for rectification under section 154. Even if the original return is filed for the A.Y 2012-13 you can file a request for rectification now. Because this request is not directly related to the original return filed for the A.Y 2012-13. This is a request for rectification of intimation passed by income tax authorities.So you can file a request now, using online mode, even if the A.Y for which the return filed is 20121-13.

Nupur Sharma (CA) (426 Points)
Replied 03 December 2014

Hi Hemanth,

Thank you for replying.

But the issue is that when I follow the procedure laid down by the department for filing rectification under section 154, in that it asks for upload of the X M L file with rectified data. How should I generate an X M L file now since the excel utility for AY 2012-13 is not available now ?

Nupur

Z ( ) (2960 Points)
Replied 08 December 2014

Text from FAQ (revision and rectification)

.https://incometaxindiaefiling.gov.in/#EFQ5

I want to file a Rectification for correcting data for Tax Credit mismatch ONLY. Do I need to upload an XML (generated from the Excel Return preparing software utility)?
Answer: No. Select the user type as 'Taxpayer Correcting Data for Tax Credit mismatch only' and then provide TCS, TDS or IT (Advance Tax/Self Assessment Tax) details. Submit the request. No XML upload/submission is required.

Subir Mukherjee (10 Points)
Replied 27 July 2017

Hi,

I had filed ITR1 since I am salaried and serving in private organisation. Within the Form 16 as received from my organisation. I have entered the Gross Income in my ITR1 form as per "Gross total income (6+7)" from my Form 16 form which is after deducting "Deductions u/s 24 - Interest" which I had filed on 16th June 2017.

Today, I received a soft copy from I Tax with Subject : "Communication of proposed adjustment u/s 143(1)(a) of Income Tax Act, 1961. It mentions to respond to the adjustments(s) proposed u/s. 143(1)(a) within 30 days.

Also its mentioned that an revised return upload can be enabled to process with complete of data.

Since there is NO provision for Deductions u/s 24 - Interest, can you guide me what is the suitable steps for me. Will 154 be applicable to me.

I would appreciate guidance on this please.