Urgent: intimation u/s 245 pertaining to ay 2010-11

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PD_PD

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35 Points Joined July 2017

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!

Replies (9)

Poltu Ghosh

Job

1865 Points Joined April 2017

Very pathetic situation. You are suffering because of blunder of your CA. How careless was he.

Poltu Ghosh

Job

1865 Points Joined April 2017

I would also like to remind you not to deal with your current CA who is demanding to pay bribe.

Poltu Ghosh

Job

1865 Points Joined April 2017

Now coming to your query. Before answering any reply would you like to share some facts. Did you receive the intimation u/s 143 (1) for AY 2010-11? What are the TDS amount in form 26AS and how much was claimed in ITR filed? And Are you a salaried person?

PD_PD

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35 Points Joined July 2017

1. No, I did not receive intimation u/s 143(1) for AY 2010-11. The ITR was filed in physical copy by the CA.

2. In form 26AS, TDS amount was Rs.2,01,000. In ITR filed, the TDS claimed was the same 2,01,000. I'm quoting this from the ITR acknowledgement copy that I have with me. The IT computation sheet from IT department shows the TDS to be 1,65,000.

3. Yes, I'm salaried.

Poltu Ghosh

Job

1865 Points Joined April 2017

Ok then do the following. Don't pay the demand in haste. Immediately file a rectification based on the computation sheet. With the rectification file copy of ITR acknowledgement, form 16 and form 26AS. I am presuming the home loan interest is considered in form 16. File a revised computation with the rectification (forget what is there in the itr) and then request the AO to vacate the demand. You may write to AO even by speed post. Just check it's receipt at AO office through speed post tracker. He will not act. Believe me no action will be taken on you request. Don't worry. After waiting for around 10 ti 15 days, Write a similar letter to Additional commissioner or joint commissioner who is his immediate superior authority and state that AO did not take any action. In very rarest of rarest case Additional commissioner will take action. Don't worry after waiting for a week write to INCOME TAX OMBUDSMAN and then see the magic. Your case will be resolved totally without any wrongful demand payment and a single rupee of bribe.

PD_PD

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35 Points Joined July 2017

Thanks for the reply.

I have some questions regarding the process:

1. How do I file rectification? Do I use a physical copy of ITR -1 ?

2. You said, ' file a revised computation'. Do you mean revised return (ITR-1) or any other form?

Thanks,

Pradeep

Poltu Ghosh

Job

1865 Points Joined April 2017

1. File rectificatoin in the format of application addressing the AO in a plain piece of paper. No need to use any return form viz ITR 1. In the application state the facts what lead to wrong demand. Mainly focus on the non allowability of full TDS.

2. Revised computation of income means "computation of income" computed in a plain piece of paper. It is just a simple and normal computation to show under what heads you earned income, viz Income from salry, Loss from HP, Income from other sources, Tax on total Income and the TDS. This will show how much refund was due to you if any or NIL tax if no tax payable/refundable.

THis will prove your contention that the demand is wrong

PD_PD

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35 Points Joined July 2017

Thanks for the help and detailed explanation of process.

I contacted the A.O office in Delhi and they advised that I get the PAN transferred to Bangalore so that I could resolve this in person locally. Do you think this is better?