• Two mistakes by CPC Bengaluru

Facts of the case – AY 2019-20


1.	For the AY 2019-20, I e-filed my income tax (IT) return on [deleted]. 

2.	In the IT return I declared

(a)	Income from pension

(b)	Interest income including ₹ 8156/- from savings bank account

(c)	LTCG of ₹ 536,667/- from sale of equity shares and mutual fund units. 

(d)	STCL of ₹ 227,274/- from sale of equity shares and mutual fund units. I had also declared carried forward Short-Term Capital Losses in the AYs 2011-12, 2013-14, 2014-15 and 2017-18. 

3.	The statutory deduction of ₹ 1 lakh u/s 112A of the IT Act was automatically reflected by the utility in the IT return. 

4.	After setting off, STCL of the current and earlier years (carried forward), the net STCL to be carried forward to future years was correctly calculated in the IT return as ₹ 492, 826/-. 

5.	On, [deleted], Deputy CIT, CPC, Bengaluru, sent a communication to inform me that my claim to set off the STCL in AY 2011-12 was incorrect (perhaps because according to him the return was filed after the due date). In Part-A -Adjustments u/s 143 (1) (a) - the due date for filing the IT return was mentioned as 01-AUG-11, though the date of filing the return of the previous year for which loss was claimed was not mentioned. 

6.	On [deleted], I sent a reply to Deputy CIT, CPC, Bengaluru, that the IT return for the AY 2011-12 was filed in the office of the ITO, Ward II (1), Gurgaon, well before the due date. A copy of my acknowledgement was enclosed as proof. My letter along with the enclosure, sent by speed post, was delivered on 13/11/2019. 

7.	I may point out that for the AY 2011-12, IT returns in physical form were filed manually in the offices of the respective assessing officers.

8.	 I did not receive any reply to my reply dated [deleted].

9.	 Subsequently, I received an intimation U/S 143(1) dated [deleted]. To my utter shock and surprise, in the intimation u/s 143(1), the statutory deduction of ₹ 1 lakh from the LTCG was denied and the carried forward STCL of AY 2011-12 was also denied.

10.	 When I downloaded a copy of the IT return filed for the AY 2019-20 from the IT website, I discovered that the statutory deduction of ₹ 1 lakh from the LTCG was missing. (May be due to fault of the utility)

11.	 On [deleted], I e-filed an application for rectification u/s 154 pointing out that IT return for the AY 2011-12 was filed well within the statutory time limit. 

12.	 However, the rectification order dated [deleted] rejected my claim. 
 
Question

Considering the facts stated above, what is the legal remedy available to me, especially when my earlier application for rectification u/s has been rejected.

Devendra Narain