Set off of refund with tax liability

Hii all...

FACTS

one of the client has not yet received the refund of amt approx 35k of AY 13-14. Under the new column "PENDING ACTIONS" introduced in the income tax portal, I came to know that the assessee had not paid a demand of approx 38k relating to AY 09-10 about which i was not aware. And this may be the reason of not issuing the refund order of AY 13-14.

QUESTIONS

Now i want to ask that :

1) what are the provisions applicable in these circumstances?

2) Has the assesse became assesse in default? If yes what are the provisions applicable for him now?

3) What should be done by the assessee at its best now?

4) Will the assessee have to pay the interest as well on the outstanding tax demand of the AY 09-10 ? if yes then how much ??

please suggest 

thanks 

Replies (1)

If intimation u/s 143(1) is received in AY 09-10 then determine the reasons for raising this demand. If not then contact jurisdictional AO or the CPC (in case of e-filing) and request for intimation. If demand is not genuine then apply for rectification of the same to the AO or CPC as the case may be. Without clearing this demand refund for AY 13-14 will not be processed.

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