Refund

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2012 Dear sir,
I had filed my return(manually), claiming refund of Rs. 49000/- in A.Y.2010-11.
Recently, I checked on NSDL site and found out the following status -
Adjusted against outstanding demand. (CIN-BSR code 0004310 Challan deposit date - 31012012 Challan Sequence no - 39585) Feb 1, 2012
However, no intimation is received to me for AY 2010-11.
I am very surprise to see that, because there is no due on my part in any FY. Even I have received refund in AY in 2009-10 and in AY 2011-12 refund also has been dispatched on 11-02-2012.
Please advise me in respect of AY 2010-11.
Thanks.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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22 February 2012
You have to meet your jurisdictional ITO, or write him a letter to grant you the refund due. You may ask him about the reasons of adjustments. Please produce the proof of Tax Payments made by you for the relevant AY.
.

Querist : Anonymous

Querist : Anonymous (Querist)

23 February 2012 after the examination of intimation for AY 2011-12, I found an adjustment U/s 245 for AY 2010-11

Querist : Anonymous

Querist : Anonymous (Querist)

23 February 2012 In above case there was the admitted tax of Rs. 960/- against the TDS of RS. 49909/-in AY 2010-11.
However, in the intimation of AY 2011-12 AO has made an adjustment of Rs 960/- U/s 245 against the refund of 36133/- and after that they refunded the amount of Rs. 35173/- in AY 2011-12
Should I file rectification U/s 154 for AY 2010-11?
Please advise me.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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20 July 2025 Thanks for sharing the details.

Summary of your issue:

You filed return for AY 2010-11 claiming refund of ₹49,000.
NSDL shows refund was adjusted against some outstanding demand (CIN details).
You believe no tax is due for AY 2010-11, so refund should not have been adjusted.
Intimation for AY 2011-12 shows adjustment of ₹960 against TDS mismatch and refund was given after adjustment.
What you should do next:
Check the exact details of outstanding demand:
Sometimes minor demand like interest or TDS mismatch can cause such adjustments. Confirm the nature of this demand by:
Visiting your jurisdictional Income Tax Officer (ITO) or
Calling the CPC helpline or
Checking online on your e-filing portal (if registered).
Gather documents:
Collect all your proofs of tax payment, TDS certificates, previous intimation orders, and refund orders related to AY 2010-11.
Write a letter or file a grievance:
If after verification you find no outstanding demand, you should:
Write a letter to the jurisdictional AO/ITO requesting clarification on the adjustment and refund of your amount.
You can also file grievance online on Income Tax e-filing portal under “Grievance” tab.
Regarding Rectification under Section 154:
Rectification U/s 154 is only to correct mistakes apparent on record in an order or intimation.
If the adjustment of your refund against demand is due to a mistake by the department, you can file rectification.
But if the adjustment is correct as per department’s records (say due to outstanding demand), then rectification is not the remedy.
First clarify the reason for adjustment before filing rectification.
Recommended steps:
Visit or write to your jurisdictional ITO for detailed explanation of the adjustment.
If you find it’s a wrong adjustment, file rectification U/s 154 quoting the mistake in the intimation order.
Keep copies of all communications.
Follow up regularly on your grievance.

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