IT demand payment under protest

I have received a rectification order u/s 154 to pay an amount of 35000+. However there is an error in the IT computation by the department. I have filed for rectification but without assigning any reason or basis, the department sent again the demand. They have also adjusted my current year refund partly to the demand. I have applied to AO. Meanwhile can I pay the amount under protest or any other head pending my appeal with AO, JCIT and ITAT in that order? If I win the appeal would they refund the total amount recovered and paid by me in protest? Meanwhile they are adding 1% int per month increasing the penalty hugely. Is there any advise from any qualified professional in the forum?

Replies (2)
Quick Summary
A taxpayer received a rectification order for an IT demand despite believing there was an error in the department's computation. After their rectification request was rejected, they are seeking advice on paying the demand under protest while pursuing appeals. While there isn't a formal 'pay under protest' mechanism like in customs, a refund is generally issued if an appeal proves an overpayment.

To better understand your situation and provide guidance, can you please clarify what specific error you believe the department made in the IT computation, and what grounds you're basing your rectification request on?

In Income tax act , there is no concept of paying under protest like in customs.

 

However you will get the refund if you win in appeal and it is established that you have paid more tax than what was due for that year.

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