1. Mr. ABC - Chartered Accountant by profession, following ‘Cash System’ of Accounting for professional income.
2. ABC had conducted Branch Audits of the Central Bank of India for the year 2008-09 in the month of April 2009 and received Audit Fees by cheque on 26-6-2009 after deduction of TDS u/s 194J of Rs. 11,000/- alongwith Form No. 16A – Certificate of TDS dated 16-6-2009 from the said Bank’s Z. O.
3. ABC following Cash Basis of Accounting, ABC have credited Audit Fees in books on 26-6-09 i.e. in the F. Y. 2009-10 relevant to A. Y. 2010-11 and claimed TDS u/s 194J of Rs. 11,000/- in the Return of Income for A. Y. 2010-11 filed on 29-7-2010.
4. On enquiry for Refund of Tax for A. Y. 2010-11, it is stated by the ITO, that “as the said TDS of Rs. 11,000/- pertains to F. Y. 2008-09. Therefore, the claim for F. Y. 2008-09 can not be allowed in F. Y. 2009-10 relevant to A. Y. 2010-11”.
5. As stated in point No. (3) here in above, that ABC have accounted income from audit fees and TDS thereon in F. Y. 2009-10 on ‘Cash System’ as per my normal and consistent accounting policy and I have not claimed the said TDS of Rs. 11,000/- in the Return of Income for F. Y. 2008-09 relevant to A. Y. 2009-10 which may be noted (The Return of Income for A. Y. 2008-09 was filed on 31-7-2009)
6. As per Form No. 26AS for F. Y. 2008-09 (A. Y. 2009-10) the status of Booking of TDS of Rs. 11,000/- of Central Bank of India Z. O. is ‘P’ and date of booking mentioned is 5-6-2009 i.e. of the F. Y. 2009-10.
7. In the above case refund of Rs. 25,000/- for A. Y. 2009-10 is already received on 31/12/2009 ( In that amount said TDS amount of Rs. 11,000/- is not included)
In the above, what steps are taken by CA ABC for received refund of Rs. 11,000 ?