Procedure if belated return needs to be rectified

You would have to consult your AO who would issue you an assessment notice wherein you can be facilitated for the same.

Ok... Thank you.

NO , no possiblity of allowing refund under section 154 , because you have forget to claim a deduction which is not a mistake apparent from record .

see we are dealing with a power of Assessing officer who has no power to allow a deduction which is not claimed in return or revised return .

Supreme court in GOETZE INDIA LTD 2006 has  " held that a claim can be made before the assessing officer in the assessment procedings only through a revised return and not through a letter ." 

now you cannot claim refund from A.O or  in an appeal also because CIT(A) will not allow any additional ground which is not put in front of A.O. consequently he will disallow the claim .

HOWEVER , you can claim deduction in ITAT , where additional grounds are allowed . 

Hi Pradnya,

Same happened with one of my client. You can consult your AO for this issue. I agree with Ankit that it is not the case of rectification and same cannot be resolved by filing Rectification Application. In my case I had filed the application for refund. I purposely avoided mentioning of rectification u/s 154.  They verified that whether claim is genuine or not then AO allowed the claim but was subject to approval for Additional CIT. ACIT approved my claim and has given the deduction for claim which my client forget to claim in his return. Keep your paper work ready it will take time but you will get your deduction and refund.

n>

For My case of AY2013-14 - I forgot to take L&T infra bonds of 20k. u/s 80CCF. I filed for rectification  online and they send it to jurisdiction AO. I met the AO and she has accepted my application and asked some questions regarding  Bond certificate. I told her that I haave attached allotment letter  and the bond is in my demat account. I have yet to get refund though. On sept 15 i have given application.  

@ CA VAP Patel

Sir, is there any provision in the Act or rules which authorizes AO to allow the claim without filing any return even when the case is not pending before him?

If possible can you share the copy of that letter after making the due modifciations therein, as you deem necessary?

Hi Z.

The answer is no. You cannot claim any deduction or expenses without filing your return. But  mine was the case of omission of deduction. Since I knew  that if I file the application under 154 then it is bound to get rejected. So I applied section 237 of Income Tax. Section 237 is for issue of refund.

Wording of Section 237

“If any person satisfy the AO that the amount of tax paid by him or on his behalf, or treated as paid by him or on his behalf for any assessment year exceeds the amount with which he is properly chargeable under this act for that year. He shall be entitled to a refund of the excess.”

The word properly chargeable is important. I took help of this word to get my work done from department. I wrote in my letter that

“My client has forgotten to take one of the deduction for which he is rightly eligible for, If such claim not allowed then income of my assesse will not be consider as properly charged as mention in section 237 of IT Act 237. hence you are (The Department) requested to consider the claim and allow the same, after allowing the claim the assesse is eligible for refund of Rs XXX. Therefore you are requested to allow the same after providing interest u/s 244 of the act”

In subject mention Application for Refund U/s 237 of IT Act, 1961.

Regards

Thanks a lot sir for sharing this information.

@ Patel Sahab

1) For AY 2008-09 - I took TDS [FROM PROFESSIONAL RECEIPTS]   from Form16 only. Some form 16 were not received before the assesmnt. but appeared in 26AS in 2012 and remains to be  CLAIMED. Can i use sec 237 in this case 

2) For AY 2010-11 - I took TDS [from prof rec ] from that year's 26AS and previous year's  [AY 2009-10]  carry over of TDS was forgotten.   Again can apply sec237.

S.no 1 rectification is pending with AO bcoz it was filed manualy.

for S.no 2  -one CA  says you can take TDS  on tax credit and income side in rectification.   

Please Guide.

Mr S. Shiroor

I didn’t understand your question exactly. But I can tell for sure that Section 237 is specifically for refund. It includes all the matter related to refund, which includes giving TDS credit on the basis of form 16 (Department asked for Indemnity Bond in such cases) and carry over of TDS credit. You can very well apply this section in your above problem.

Regards

does this mean deduction forgotten to be claimed can be cliamed through letter?

Thanks for ur reply Patel Sahab

In 2008 I did  not know the concept of 26AS.

AY2008-09 was filed manually taking TDS from Form 16. 

One of my client directly deducted TDS and filed TDS return.

In 2010 I registered with NSDL through Karvy for 26AS by paying  Rs 17 fees.

I saw AY 2008-09 26AS and saw  that TDS which i did not claim in return. 

The assesment was already done that time.  Lots of TDS were not seen at the time of assesment  which were rectified in 2012 and were visible later.

One CA known to me filed for Condonation u/s 119. After three years also nobody replied from IT dept. 

Finally I took to myself and gave an application for condonation - AO said that you write to me for Rectification which I did.

I have gone there  9 times now . The tax Inspector is telling unclaimed TDS cannot be claimed.  "usko bhool Jao"

I went to AO and she is telling to take it in rectification of AY 2010-11 along with TDS carry overs  from 2009-2010.       

If I dont get refund for unclaimed TDS I will use 237.