Disagree with a tax demand on 2009-10 - What are my options?
A.Y. 2009-10: On that financial year, my return was selected for scrutiny because my Form 26 AS showed a lot of credits (couple of lakhs of rupees) under my PAN number. I was called in IT Office and income tax officer Mr XXX interviewed me. Finally, he realized that this was a false alarm and the credits that were showing up in my Form 26 AS actually belonged to somebody else's PAN. They showed up in my Form 26 AS because HSBC wrongly reported those credits to IT department under my PAN. So, that closed/clarified the prime concern of that scrutiny. But, IT Officer Mr. XXX found some more things that were not considered in my original return and he did re-calculations of my taxes and he found that I should have a refund instead of the demand. Based on that he generated an Assessment Order, he took my bank account details also for the refund, but nothing has moved from there.
I didn't receive any refund on my bank account.
At the same time, incometaxindiaefiling.gov.in still shows that I have a outstanding demand on that year, rather than a refund.
Meanwhile, I relocated away from India, so I am not able to personally follow up on this.
I understand I am probably too late in acting on this issue. Still wanted to check, what are options now for closing this? Can I file a rectification return in this case? How else, do I communicate to the IT department that I should have a refund here, rather than a demand.
Asked 1 year ago in Income Tax from United States
Hello Mr Das,
There is an option in the incometaxindiaefiling.gov.in in the worklist option there is a link For your action where the outstanding demand would be showing. There in resposnse you could say that you do not agree with the IT departments demand. And then go on to file the rectification return in response to show your working. But for that you need to have the Assessment order having the CPC communication reference , against which you will be able to rectify your return. And then the same is processed accordingly by the IT department and they would issue the refund if they find all information to their satisfaction.
One of my clients recently faced same issue and then he got his refund.
For any further clarifications you may write at
If there is an officially refund determined and official order copy received than its not late and we can taken action against it.
with respect to your question do you have any order copy received showing that your demand is cancelled and refund is due. If yes than based on the same we need to submit the response to the outstanding demand generated online along with the copy of letter to concern ward officer and can push them further for the release of refund in place of demand.
But to have order copy or any official communication from the department is must for the same.
First of all Check the latest Form 26AS for AY 2009-10 and see whether the wrong Tax Credits from HSBC are still appearing or not.
If your case was picked up for Scrutiny, there should be an Assessment Order issued by the Assessing Officer. If the Order shows that there is a Refund, then you are entitled to receive the Refund.
But if the Income Tax Website is showing a Tax Demand, then check under which section and also see the Date of the Order showing the Demand. The Latest Order will supersede earlier Orders.
I can guide you better if I can look at the Assessment Order.
Your time limit for filing a rectification request has been elapsed. You can file it within 4 years from the end of relevant Assessment year.
Alternatively, you can write to AO giving reference to your earlier communication and attaching the AO's order.
Please feel free to call/revert in case of any doubts
Thanks and Regards
CA CS B.Com
If the Assessment Order was received by you, you can seek refund by disagreeing with the demand and giving the details of the assessment order. If the assessment order was not received by you, you can mention that the assessment was done on scrutiny basis and the assessment order was not received by you.
Your response needs to be framed upon the basis of the documents you are having with you, 26AS and the details of demand as reflected in the IT Department portal. I suggest that you should engage professional services for this purpose.
I do have a copy of the assessment order he generated with me, which talks about the reason for the tax scrutiny, the HSBC mess, the reason for the changes in computation and shows the final computation which concludes with a refund. It also does have a sign and seal of the ITO Officer, while the sign is very clear, the seal isn't very clear (its presence is clear but not the text).
However, it doesn't refer to any CPC communication reference number anywhere as some of you seem to be looking for. It clearly mentions that the assessment was done u/s 143(3) and the date of the assessment order is 30/11/2011, whereas the date of the demand is also 30/11/2011. Form26 AS doesn't show those HSBC false entries any more, so that stuff is closed.
>> you can write to AO giving reference to your earlier communication and attaching the AO's order
How? Online? Responding to an outstanding demand doesn't allow me to attach any document, it just allows me to write a few sentences. I also tried dropping a hand written application in the ITO office, with all these details in 2013, but nothing moved, nobody responded.
As for the online response of the outstanding demand, I have already responded (a year ago) saying that I should have a refund based on the AO generated by the assessing officer, but how do I close it? The demand is still showing up and potential tax interest penalty is piling up, if I have to eventually pay up the demand, in the worst case.
>> showing your demand is cancelled and refund is due.
The assessment order doesn't talk about demand, it just concludes the computation with a refund.
>> we need to submit the response to the outstanding demand generated online along with the copy of letter to concern ward officer
How do you attach a document (the assessment order) while responding to an outstanding demand online?
BTW, the demand and the refund amounts are different. And the demand was generated under section code: 1433
Asked 1 year ago
As you have the assessment order, it is possible for you to mention the details of assessment order while disagreeing with the demand in the Efiling portal. You may follow up with a letter to the assessing officer with a copy to the CPC to quash the demand.
If you are still not able to get proper response, you may write to Chief Commissioner of Income Tax to resolve the issue. You can also approach Ombudsman, if your issue is not resolved within a reasonable time frame.
If you are well versed with the procedures, you may do so on your own. Otherwise, I suggest that you should engage professional services from any of the experts, you are comfortable with.
Dear Mr. Arijit,
You are saying there is a Refund as per order u/s 143(3) dated 30-Nov-2011 for AY 2009-10. At the same time, CPC is saying there is a Demand u/s 143(3) vide Order dated the same for the same AY. This is technically impossible.
Request you to kindly share the Order by email on firstname.lastname@example.org. Also, share the screenshot of the Outstanding Demand shown in your IT Login.
I would be in a better position to advise you after I receive the above mentioned docs.
From the Assessment order it self we can do necessary communication for removal of demand. Its online communication as well as written communication to the concern Assessing officer of your ward. If yo can send me scan copy of the order along with your income tax login ID & Password and Date of Birth than i can do needful for submission of both the things.
If you have already responded and still nothing moved out we can reach to higher authority like grievance cell or ombudsmen through online submission of facts only. But all call can be taken once i go through the assessment order passed.
Sir hope your question is answered.
I doubt if anything can be done online in your case through the incometaxindiaefiling website. If visiting the department is a problem being an NRI, you can ask someone to visit the department once and get the email id of the concerned ITO for you. You may then co-ordinate with both the officer as well the CPC people.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP