Hi all,
Before processing my refund for AY 2014-15, CPC sent me a notification u/s 245 saying that my jurisdictional A.O (in Delhi) has raised an outstanding demand of Rs. 1.5Lacs pertaining to AY 2010-11. As given in the letter, I logged into incometax website and disagreed with the demand by providing all details. I received my refund after a few days. This happened again in 2015-16. I followed the same process and received refund. I got another notice now in 2016-17 as I have some refund from my ITR.
Since I'm not based in Delhi any more, I got in touch with a CA based in Delhi. He went through my documents and had a few meetings with the A.O. Here are the findings:
1. Form 26AS has higher TDS than the computation sheet sent by A.O (about 35,000).
2. The CA who filed my ITR in 2010-11 (physically and not online) seems to have made a mistake by not filing it properly - specifically, he seems not to have declared my housing loan interest payment, principal payment and some more exemptions. This is what my current CA who is handling the case told me. I'm not sure about this and I don't know how a CA (2010-11 one) can miss out this simple exemption.
I asked my current CA if rectification could be done. He said it can't be done as the maximum deadline has already passed. He said I'm left with two options:
(a) pay entire demand with interest till date (almost 2Lacs) or
(b) pay a large % of this amount to A.O as a kickback so that he can let me rectify my return.
All my documents (form 16, form 26AS, ITR acknowledgement physical copy) seem to be right. However, I don't have access to the ITR file that A.O is claiming to be wrongly filled.
I'm confused what I should do now. Please suggest what my next steps should be.
Thanks!
CAclubindia
