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Query on notice u/s 245 of income tax act

Tax queries 730 views 3 replies

One of my Client had filled return for AY-2009-10 on due date, but IT Dept had raised a Demand Notice for RS. 30800/- on 28-11-2010 reason was some of TDS entries did not matched with IT record. But my client was not aware of this notice till aug-2014. In between Assessment years IT department had adjusted this demand against refund of subsequent  AY as bellow.

Ay-2011-12 Rs. 7180/-, AY-2012-13 Rs. 12-13 Rs. 29760/- , AY-2013-14 Rs/ 16140/- total refund adjusted till Aug’2014 was Rs. 55470/-

On 27-July-2015 IT department  once again raise a notice u/s 245 to adjusted refund for AY – 2014-15 for Rs. 32220/-

I can’t understand how much amount will be adjusted by IT department against mere Rs. 30800/- where as total interest for 46 months on Rs. 30800/- is just Rs. 21252/- so total demand (30800+21252= 52052/-) where as they had already collected Rs. 55470/- and one more for AY-2014-15.

Anybody can help to out come from this dilemma.

Replies (3)

This really sounds bad and I have seen one such case. There are so many departments and now after being online CPC is another centre which does not, in real time, coordinates with the AO an result being harrased citizens. If the return was filed physically, please visit the assessing officer and give a written request as well as explain him the entire situation. If you are in luck, things may get sorted out else Tribunal is the other way. For online, you can forst talk to CPC and raise case Ids and then if things dont work out, tribunal with these correspondence proofs will help. I see all this as a part of Tax terrorism where only one authority is listned to, others are just mute participants.

1st Check the demand amount for demand(S) , you may go to my pending options from the dashboard , after you have logged in at https://incometaxindiaefiling.gov.in

 

So you mean tax was deducted but the due credit was not given? S. 205 will protect you in that case.

Come back with more details

If  your client's 26AS statement is updated. Go to the AO and give him a letter for request for rectification of return with a xerox copy of 26AS. He must request him. to tell the CPC bangalore not to send refunds to 2009-10.  Most probably paper return for TDS was filed and hence Tax credit is not seen in 26AS or IT dept's system.  Down load the 26AS from  TdsCPC.gov.in and give it to AO for refund of  all the tax credits greater than Tax liability.  Dept charges heavy interest for  234A b c.  That interest penalty also should removed. Act fast. 


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