Unbelievable 143(1) ! HELP & every member should aware of this

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PALASH

Nothing

2000 Points Joined June 2012

VERY PATHETIC !! PLSSS HELP !!!!!

QUERY ( VERY URGENT ):-

CLAIMED AS REFUND , BUT CPC BANGALORE DECLARED IN 143(1) AS DEMAND !!!

For a.y 2011-2012 return filed through online by declaring a commission income ( assessee is a commission agent of LICI ) of rs 1,77,785/= (approx ) with T.D.S of rs 17,778/= as per FORM 16A & 26AS.

But unfortunately, after 3-4 months, CPC Bangalore sent an intimation order sec. 143(1) with an income of rs 3,45,987/= & with a demand of rs 17,778/= and as per sec 245 the demand totally adjusted with full amount of refund claimed for A.Y 2012-2013 also.
And i am 100% sure that both the a.y 2011-2012 and 2012-2013 , there was no mismatch of commission income & tds amount with 26AS.
SO, IT'S TOTALLY AN UNBELIEVABLE INCIDENT .

My question : 1) What's the actual procedure to get full amount of refund with interest for a.y 2011-2012 & 2012-2013 ?

Pls help.....
T

hanks..

Replies (4)

CA Lukesh Sethi

CHARTERED ACCOUNTANT

150 Points Joined December 2007

Dear sir, We have to file rectifiction under section 154

Mayank Prajapati

Article Assistant

30 Points Joined August 2013

When first notice came u/s 143(1), its shows in which source, there is difference of income. So from the first notice u have to fined out the diff. that income tax department made mistake of calculating income. Than u have to reply to IT word and cpc bangalore with respective documents. Later on after considering your reply cpc bangalore, mail about rectification. U can also mail me, if required mayank93.prajapati @ gmail.com

PALASH

Nothing

2000 Points Joined June 2012

BUT, CPC BANGALORE ALREADY REJECTED SEC. 154 FOR RECTIFICATION PURPOSE. THEN , WHAT SHOULD I DO FOR THAT ??

IT'S VERY URGENT ..BCOZ, I WANT WHOLE REFUND AMOUNT FOR THE ABOVE MENTIONED 2 ASSESSMENT YEARS.

THANKS..

Kiran

44 Points Joined November 2007

Section 245 is only an intimation to adjust a tax demand. Rectification petition under section cannot be filed against intimation under section 245. However, the notice itself would be specify the Assessee to raise this issue with the jurisdictional Assessing Officer ('AO') within 30 days of the receipt of the notice. I would suggest to file a letter with relevant documents (like 26AS and Form 16A) to the AO. Once 30 days have expired the CPC would adjust the demand, meanwhile, if the AO takes up the case then CPC will not proceed with the 143(1).

Rectification under section 154 can be filed only against the intimation order under section 143(1) and not against 245.

Further, your issue has been addressed in Instruction No 3 /2013 post the Delhi high court judgement in Court on its own motion vs UOI and Ors in WP (C) 2659/2012 dated 14 March 2013

Trust this would be useful to you.