Received it notice demand. need help

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josh

256 Points Posted on 09 September 2014

Hi folks

Recently received IT notice u/s 154 and asked to me to pay 7290 u/s 234B and 234C for assessment year 2008-09. I feel the amount charged under 234B and 234C is overcharged and not proper. Need your suggestions/feedback on this

For A.Y 2008-09, there was a shortfall of Rs 36825 as advance tax in the final installment which was to be paid by 15-March-2008. The IT filing was done on 31-July-2008 on time.

As per 234C rule , it should be 1% of shortfall amount x 1 monthly = Rs 368

As per 234B rule , it should be 1% of shortfall amount x 4 months ( counting from April-2008 to July-2008) = 368 x4 = 1472

So the total amount should be 368+1472=1840 as per my calculations.

But the IT dept sent a notice of Rs 3049 under 234C and 4568 for 234B , so the total amount demanded as per IT notice is 7290.

So there is a difference of 5450 between the IT notice and calculations done by me.

I like to know whether the calculation done by me for 234B and 234C is valid or not

Thanks

Josh

Replies (3)

k K Sarawagi

Others

24 Points Posted on 29 October 2014

Dear Mr. Josh,

You have said that there was shortfall in payment of last instalment by Rs.36,825/-. Please inform whether there was no shortfall in all other instalments. If there is no shortfall in other instalments, your calculation is correct. In that case, you just pay Rs.1840/- and file challan alongwith an application u/s 154 for deletion of the balance demand.

Regards,

KK Sarawagi

Swami Ayyappa Nuli

TAX ADVISOR & CONSULTANT AT G.S.T SUVIDH

1372 Points Posted on 29 October 2014

In your case order of Rectification. u/s.154 is for A.Y:2008-09.It is to be issued with in Four years from the end of F.Y in which the order sought to be rectified was issued. In your case the last date for issue of notice u/s.143(1) is March, 2010, so rectified order u/s.154 can be issued on or before 31st March,2014. So if is issued on or after Apr,2014, the above order will be invalid. If your return is selected for 143(2), then order u/s.154 will be valid as last date for issue will be extended to 31st March,2016. So if your return is selected either u/s.143(3) or 144 or 148 or 263/264 you need to consider additional demand raised under above sections for the purpose of calculating 234B and 234C. If you return is not selected for any of above, notice by dept. is invalid so you need to consult your auditor and send letter to the dept. about invalidity of notice. Thank you.