Refund assessment

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This query is : Resolved

Geetanjali Savarkar (Querist)

25 April 2014 Our assessee filed his ITR for AY 2011-2012 calculating tax wrongly and overstating it.he thus claimed refund of Rs 44 instead of Rs 15080. His assessment was done U/s 143(1) in which his tax was rightly calculated but credit of advance tax was not given and a demand created.
When we contacted the AO we were told that his advance tax credit would be given but he would not be given a refund as he had not claimed it.
we would have to go for condonation of delay to CIT for claiming refund.

my query---1.they would have to do scrutiny assessment and the period for that is expired or not?

2. Sec 143(1) the AO can remove arithmetical errors while assessing the return.in The Intimation the tax was rightly calculated by department but advance tax credit was not given to generate demand.So they should grant the refund right?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

25 April 2014 you can file rectifiaction petition under 154 and can claim refund.

Nikhil Kaushik

Nikhil Kaushik (Expert)

25 April 2014 1. there is no need to scrutiny assessment. and anyways it is timebarred noted.

2. file rectification 154 as Tushar suggested. Please note refund is never actually claimed. You simply claim income, expense and tax credit. any amount payable or redundable is merely a final result.

Geetanjali Savarkar

Geetanjali Savarkar (Querist)

01 May 2014 Thank you so much I will go ahead with Section 154.However since the department has calculated the tax correctly in 143(1) and just not given the tax credit for advance tax the reason for rectification would only be the consideration of advance tax credit right?
We would not need to seek rectification of tax amount which party had wrongly calculated?

Geetanjali Savarkar

Geetanjali Savarkar (Querist)