SCRUTINY ASSESSMENT AND DEMAND OF TAX THEREOF

This query is : Resolved

C.S.MADHURANATH

C.S.MADHURANATH (Querist)
Follow

05 December 2025 DEAR SIR,
MY FRIEND WHO TOOK VOLUNTARY RETIREMENT IN AY 2024-25 HAS FILED THE RETURN IN TIME AND 143(1) ASSESSMENT WAS OVER WITH NO DEMAND OR REFUND. HOEVER, THE RETURN WAS SELECTED FOR SCRUTINY
AND NOW A DEMAND HAS BEEN SERVED UNDER SECTION 156. MY FRIEND HAS FILED HER RETURN OPTING FORNEW REGIME AND 143(1) WAS ALSO DONE UNDER NEW REGIME ONLY. THE TOTAL INCOME AS PER MY RETURN,UNDER 143(1) AND ALSO NOTICE ISSUED AFTER SCRUTINY ALSO REMAINS THE SAME. IN OTHERWORDS NO INCOME WAS ADDED OR DEDUCTIONS ALLOWED. THE ONLY REASON FOR THE DEMAND IS THAT HE HAS OPTED FOR NEW REGIME BUT SCRUTINY ASSESSMENT WAS DONE UNDER OLD REGIME WHICH HAD RESULTED IN THE NOTICE OF DEMAND. IT IS MENTIONED IN THE NOTICE THAT HE CAN APPEAL WITHIN 30 DAYS TO COMMISSIONER(APPEALS). KINDLY ADVISE TO PROCEED FURTHER FOR CLOSURE OF DEMAND.

Kowsalya

Kowsalya (Expert)
Follow

05 December 2025 Hello!
Since the demand has arisen due to an apparent mistake in applying the wrong tax regime, you can file a rectification request under Section 154 by selecting “Request to AO Seeking Rectification” on the Income Tax portal. If accepted, the rectification will cancel the demand without any further proceedings;

If the same is not accepted or rectification order is not in favour, an appeal under Section 246A may be filed before the Commissioner of Income-tax (Appeals) within 30 days from the date of rectification order or demand notice.

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