INCOME TAX DEMAND WRONGLY ADJUSTED AGAINST REFUND

assessment is done u/s 143 (3) and demand raised of rs. 1 lakh. we have filed appeal to CIT Against this order. but when i received my refund order of last assessment year they have adjusted demand in my refund amount.
is it wrong because we are in appeal and case is not final.

Replies (5)
Quick Summary
A user is questioning whether an income tax demand can be adjusted against their refund while an appeal is pending. While the initial assessment raised a demand, an appeal has been filed. The tax department has adjusted the refund against this demand. The discussion clarifies that this is standard procedure, but an opportunity to respond to the outstanding demand is usually provided via a Section 245 notice. If the demand is disputed, an application for stay of demand can be filed online.

No, I think it's not wrong
Its procedure. they adjust refund against demand.
Before adjusting refund against the outstanding demand an opportunity is hiven to assessee by way of issuing norice under section 245 in case of non response the same is adjusted by cpc

HOW TO FILE APPLICATION FOR STAY OF DEMAND ONLINE AFTER INTRODUCTION OF FACELESS ASSESSMENT SYSTEM.

How to file stay of demand online after introduction of faceless assessment system

Read more at: https://www.caclubindia.com/experts/wrong-adjusted-of-income-tax-refund-2845269.asp
U have to respond outstanding demand through e filing portal

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
15 September 2026
Client-site CA associate

Aditya Muley and Co

Mumbai

CA

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
ARTICLESHIP 15 September 2026
Freelance Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details