Refund of tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 June 2011 Dear all,

I need a solution for the following query,

My client is working in a dept of CBI,salary in that department was hiked from retrospective effect from AY 2004-05,05-06,06-07 and received the same after deduction TDS,same was considered and filed the return.

But the Apex court has given a verdict on 21-8-07 stating that salary should not be hiked to that extent and limited the same.For that the excess salary was paid to the Govt., without set off the tds as the department were not same, and filed revised return reducing the taxable salary and claiming for refund.
Department denied refund on the ground that any refund to be set off from the next year income and cannot be refunded that giving an example of Bad debts in a business activity.
my client was retired from the next year and was unable to make the same,dept., contends that as there was no express proviso such loss should be bearred personally,vide rejected the application.

Information required regarding

1.Whether filing of revised return is justified.(as the order itself is delayed)
2.Any express proviso that refund should only be setoff for the above situation and cannot be refunded in cash.

MY knowledge is that refund can be granted, provided that the assessee was not liable for any tax or as the case may be to the department or to the concerned person.,(am i correct)
All the proofs regarding payment of salary and tds deduction and G.O. for hike in salary and verdict of apex court was available.

U S Sharma

U S Sharma (Expert)
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27 June 2011 get in touch with DDO of the department and seek his advise, as both the departments belong to GOI, they can issue requests and orders among each other in favor of assessee.

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