There are cases where we see that the Income Tax Department while passing an assessement order u/s 143(3) misses to give credit of TDS deducted or wrongly gives credit of a lesser amount of TDS, due to which difference arises between the tax paid by the assessee and tax calculated by the Assessing Officer. A certain amount of demand is raised against the company not allowing them to claim their refund.
For this, letter can be written to the department u/s 154 of the Income Tax Act, 1961 which says..." any mistake apparent from the record can be rectified by the Income Tax Authorities in following cases: a) Any order passed under any provisions of the Income-tax Act. b) Any intimation or deemed intimation sent under section143(1)."
The following is an example of a reply to the department u/s 154 of the Income Tax Act, 1961 for any of the above error made by the department.
Date:
To
The Income Tax Officer,
Ward- 1(1),
Address,
Kolkata - 700069
Respected Sir,
Ref: PAN No. ABCDE1234F / A.Y.2013-14
Sub: Rectification U/s 154 under the Income Tax Act, 1961 in the matter of M/s ABCD Pvt Ltd.
This is to inform you that according to the assessment order passed U/s 143(3) of the Income Tax Act, 1961 on DD/MM/YYYY there is an outstanding demand of Rs. _____ /- against us. However, while passing the above order credit of TDS of Rs. _______ /- has not been given but only of Rs. _____ /- was given.
Hence, we would like to request you to give us the credit of the balance TDS amount and process our refund. A copy of Form 26AS, ITR Acknowledgement, Computation of Income and a copy of Demand Notice U/s 156 for the A.Y 2013-14 has been enclosed for your kind perusal.
Your quick action in this regard will be highly appreciated.
Thanking you,
Yours Faithfully,
For ABCD Pvt Ltd.
(Director/Authorized Signatory)
CAclubindia
