Refund problem

This query is : Resolved

CA Aditya Shah (Querist)
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25 October 2012 My principal deducted TDS @ 10% on my professional income from coaching centre fot the AY 2008-09 and issued me TDS certificate mentioning my PAN and name.
I filed my IT return for AY 2008-09, claiming refund of Rs approx 3 lakhs. But the department raised a demand of Rs. 2.9 lakhs for AY 08-09. After my inquiry, they informed me that the TDS claimed by me is not reflecting in 26AS. So the demand is correct.
I approached the jurisdictional I.T.O who issued a notice to the deductor to confirm my TDS certificate.
Deductor infoprmed the correctness of certificate and also informed department, that by mistake they mentioned wrong Pan no. in TDS return.
They informed the NSDL to correct the PAN no. in the submitted return.
After that, JCIT issued a refund cheque for AY 08-09 with intrest.
But in subsequent year AY 09-10 and 10-11, my refund was again adjusted on the demand of AY 08-09 by CPC Bengalaru (which was Nil as per my computation).

On my request CPC informed me to contact the jurisdictional ITO as they are the only authority to correct the demand. After my several requests and persuasion, I was issued a partial cheque for Rs 90000 mentioning refund for 08-09.

But still there is approx Rs. 1.9 lakhs still due with the department for which several time i requested CPC, ITO, JCIT but in vain.

NOW WHAT IS THE REMEDY LEFT TO ME AS I HAVE FULLY LOST MY PATIENCE.

Please Help.

Sushil Kumar Shaokand

Sushil Kumar Shaokand (Expert)
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26 October 2012 Ask your deductor to file the correction return with your correct PAN No., register for Form- 26AS, if you see your refund amount in your 26AS, then contact to IT Deptt, without correct return you will not get anything.

CA Aditya Shah

CA Aditya Shah (Querist)
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26 October 2012 @Sushil
Sir,
Sincere thanks for your reply.
But in this case the deductor is no more at good terms with our client.
Further, the onus of filing the return & depositing the amount to the government's credit lies on the deductor.
In this case, what else can be done?

In your opinion, which IT authority in the department's hierarchy should he approach to?

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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20 July 2025 This is quite a tricky situation but not uncommon. Here's a clear path forward for your client:

Key Points:
Deductor admitted mistake of wrong PAN in TDS return but delay or mismatch caused your client’s TDS credit to not reflect properly.
Refund was partly paid, but the balance is stuck due to departmental adjustments.
Deductor relationship is strained, so relying on their cooperation may be tough.
You’ve already approached CPC, ITO, JCIT with no satisfactory resolution.
What your client can do next:
File a Grievance on the Income Tax Department’s e-Nivaran Portal:
This is an official platform where taxpayers can raise unresolved issues and track their status.
It will escalate your grievance to a higher authority if not resolved timely.
Approach the Assessing Officer (AO) or Jurisdictional Principal Commissioner/Commissioner of Income Tax:
Since you’ve contacted the ITO and JCIT already, escalate formally in writing to the Principal Commissioner or Commissioner with all documentary evidence.
Highlight that the deductor admitted mistake, that TDS credit is rightfully due, and there is an unjust adjustment of refund.
Request Rectification under Section 154 of the Income Tax Act:
You can file an application for rectification of mistakes apparent from records with the AO or CPC.
Include copies of TDS certificates, correspondence with the deductor, and proof of corrected TDS return by deductor (NSDL acknowledgment).
File a Complaint with the Tax Ombudsman:
If the above steps do not yield results, the Taxpayer’s Ombudsman can be approached for quick redressal.
The Ombudsman can order corrective action in case of departmental delay or negligence.
Legal Recourse (Last Resort):
File an appeal before the Income Tax Appellate Tribunal (ITAT) against any wrong demand notices or refund adjustments.
But this is time-consuming and costly, so try administrative remedies first.
Summary of who to approach:
Start: e-Nivaran portal (online grievance redressal)
Next: Jurisdictional Principal Commissioner/Commissioner of Income Tax (in writing)
Then: Rectification application (Sec 154) to AO or CPC
If no resolution: Tax Ombudsman
Last resort: ITAT appeal

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