Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment

Save Share

This query is : Resolved

varinder kumar (Querist)
Follow

31 August 2026 I seek independent professional opinion on the following matter/case
An alleged outstanding demand pertains to AY 2012-13. The assessee's position is that the demand was not payable, as the relevent taxes had already been paid. The assessee had submitted a response against the demand, duly supported by relevant documents/attachments.
Now, the Income Tax Department has adjusted the refund due for AY 2026-27 against the alleged old demand.
The Income Tax portal presently shows that a response against the outstanding demand was submitted, but the actual response, supporting attachments and AO's consequential order/reasons are not presently available/visible on the portal. The old physical records are also not readily traceable.
Proposed simultaneous action
I am considering taking the following three actions at approximately the same time:

1. RTI Application - seeking certified copiesof the response submitted by the assessee alongwith supporting attachments/documents and the AO's order/communication with reasons/grounds for rejection.
2. Income Tax Grievance - objections to the adjustment of the AY 2026-27 refund against the disputed old demand and requesting release of the refund.
3. Faceless Appeal - filing the appropriate statutory appeal, if mandatory/necessary, without waiting for the RTI outcome, in order to protect the assessee's appellate rights.

Opinion specifically requested

1. Is the above three-pronged approach legally and procedurally appropriate?
2. Should the Faceless Appeal be filed immediately, even though the old response and AO's detailed order/reasons are presently unavailable?
3. What is the correct appellate provision/order against which the appeal should be filed, and what limitation/condonation issues need to be considered?
4. If appeal is mandatory/necessary, please suggest the appropriate Grounds of Appeal, particularly regarding:
disputed/non-payable old demand duly supported with judiciary judgements, if any,
taxes already discharged
response previously submitted with supporting documents,
non availability of the old response/supporting documents and AO's reasons on the present portal
adjustment of AY 2026-27 refund against the alleged AY 2012-13 demand
requirement to verify the complete departmental record before recovery/adjustment

5. Should the RTI, grievance and appeal be pursued simultaneously, rather than waiting for one remedy to conclude?

6. What would be the safest and most effective legal strategy in the interest of the assessee?

Please give independent practical and legal opinion, particularly on the grounds of appeal and limitation/condonation aspect.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
Follow

31 August 2026 The proposed three-pronged approach should not be executed simultaneously. File the RTI and Grievance immediately to secure the missing AY 2012-13 records and formally object to the illegal refund adjustment. Hold off on the Faceless Appeal because a Section 245 adjustment cannot be directly appealed; you must appeal the original foundational order, which requires the details you are seeking via RTI. Once records are obtained, file the appeal with a strong Section 249(3) condonation petition. However, the most effective strategy for an illegal refund adjustment without prior notice is often filing a Writ Petition before the High Court to quash the action entirely.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now