Processing of returns of assessment year 2011-12

The circular will create more problems to most of the assessees in future.

The refunds for AY 2010-11 and AY 2011-12 are being adjusted for unknown demands  of past AYs without  confirming with the  Assessees. 

I have a  case in which demand of AY 2007-08 has been recovered twice from the Bank Account of assessee.   

More interestingly, the demand is still not cleared. The status shows that it is still pending. 

It seems that the department will follow such tactics in the coming years also.  

The circular shows the inefficiency of the Department. At the first sight it looks assessee friendly , but actually it is not going to be so.

Agreed with my friend Shri Paras Bafna.

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In one of the case; the department has adjusted some demand of A.Y. 2001-02 while issuing refund of A.Y. 2009-10. (surprisingly at that time; no computerization was existed).

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In one of the case; the department has asked the documents of A.Y.2000-01 from the assessee in the matter of TDS because it itself does not maintain records at its own ( maximum 6 years records it maintains and rest of documents are destroyed  )!