I am a small consultant and look after filing Income Tax returns, Sales Tax , ST etc, One of my clients filed ITR for FY 2006-07 and 2007-08 by claiming refund due to TDS amount for that period. He provided some civil (contract) work for reputed construction company in Bangalore. They have deducted TDS for that period by mentioning wrong PAN number and issued TDS certificates. Whereas my client has submitted PAN xerox copy to that company. My client filed IT returns and now he got scrutiny notice from IT Dept. when they check his Form 26AS account. There is no tax credit and hence IT dept declining to refund and demanding Tax. When I contacted construction company which my client rendered services, they say this is very old data now we cannot file revise ETDS returns. But IT dept issued so many notices u/s 143(2) and now they want to issue an order. Please suggest me how to help my client.
Menu
Scrutiny Assessment - Proprietor ship
Dear Rajesh,
You must to reply of such notice mentioning reason above of PAN along with TDS Certifficate copy and copy of which you had deposited at such co. which deducted TDS and a copy of ITR return.
Here in your case, i advice you to file a rectification U/S 154 with AO of your respective ckient along with Xerox of TDS ceritificate issued by that construction company. Based on such TDS certificate AO will make a rectification in demand.
He may issue you a further notice of showing orignal TDS certificates for TDS deducted, in that case present those certificate to him
Regards
M.s.kabra
Thank you for your reply; Mr. Jha ,we filed reply against all notices along with submitting TDS certificates. And also we submitted a letter from Construction company that they have addressed direct to concerned AO and mentioned in that letter all the payments made to my client and as well as deducted TDS amount with cheque nos and TDS challan nos, dates etc.,. But AO is not accepting, because December is the last date for closing of assessments.
As per Mr. Madhusudan Kabra we have to file rectification u/s 154 with AO. I post my reply after submitting rectification u/s 154 along with any notice from AO...... Thank you once again both
do direct contact to us .....we may not be able to see ur post at that time
my mail is
gotukabra @ gmail.com
Thank you Mr Kabra for providing you mail id . Regarding this I spoke to my client and he is ready to file rectification u/s 154. Shortly we file and come back to you.
nothing to worry. ur client has not done anything wrong. simply write the entire facts to the commissioner. The commsssioner will issue notice to the deductor company and will also provide specific directions to the ITO.
Thank you sir, and please suggest me when can I write to Commissioner, after receiving of notice u/s 143(1) or prior to this. Please advise me.
Mr.Pankaj is right, u have already received many notices in this regard. So you can go ahead with the letter.
Another thing which i wanted to share is that, the PAN number in which the TDS has been remitted and certificate been issued does not belong to the assesee, please find out the jurisdiction of the wrong PAN and mark a copy of the letter to the commissioner to the concerned assessing officer (of the wrong PAN) as well.
This might help.
Mr.Dhawal this is an excellent idea and I am trying to get jurisdiction of wrong PAN. Thank you
Just to share, you can get the jurisdiction from the website. If you already knew about it, pls ignore.
No I don't no. How can i get concerned jurisdiction? Please help me
U will have to approach DCIT/CIT soon since the ITO has to dispose the case of ay 8-9 by 31/12/2010. Just in case u could'nt get this done in time, u can move the application u/s 154 against order u/s 143(3) with the copy to DCIT. The ITO cannot reject your application u/s 154 without giving u reasonable opportunity of being heard.
Yes! you are right Sir,
Recent Threads
- ITR Updated returns. Time limit for filing
- ITR 2 Processed and Refund Credited to Bank
- Freelancer or Salaried
- LTCG Tax & Indexation on Debt Mutual Funds Sol
- Section 45(5A) and 194IC with carry forward of tds
- Paid tax amount, CIN generated and challan downloa
- INTRADAY INCOME PRESUMPTIVE INCOME
- Clarification on Deemed Export Status for EOU-to-E
- LTCG Tax on property
- Short term gain in itr2, missing 111A
Related Threads
CAclubindia
