CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime

This query is : Resolved

Prakash G.S (Querist)
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12 November 2024 My ITR3 for AY 2023-24 has been processed by CPC under OLD REGIME without recognizing the Taxation Option exercised undersection 115BAC for NEW REGIME by filing FORM 10IE during AY 2022-23 on 01-Jun-2022, which has been CONTINUED for AY 2023-24, as EVIDENT in the ITR3 filed for this Assessment Year. I have also Registered my grievance in this regard in the e-portal of the IT Department and have sought RECTIFICATION FIVE TIMES under Section 154 but have got the same RECTIFICATION ORDER repeating the same MISTAKE with processing done under OLD REGIME with TAX DEMAND of Rs.87,000. (Similar thing had happened in AY 2022-23 but it was corrected by RECTIFICATION). I am in continuous correspondence through email and written communication several times with the Department, including grievances raised on E-PORTAL, but the issue remains UNRESOLVED. I have also registered my grievance in this regard in CPGRAMS Portal of GOI which is pending.
I request advice on further course of action to resolve the issue including as to whether i can file an Appeal under Section 264 .
G S Prakash

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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12 November 2024 When was ITR 3 filed for AY 2023-24?
Whether Partner on any firm? (liable for tax audit)

Prakash G.S

Prakash G.S (Querist)
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12 November 2024 ITR3 dated:26-Jun-2023 filed for A.Y 2023-24 wherein the details of exercise of option for new tax regime U/s 115BAC and continuation of the option for the current assessment year (2023-24) are on record in Column 19(b)and b(ii) on the first page under PARTA_GENERALPERSONAL INFORMATION of ITR3. I am an Individual NOT liable for tax audit.
Further there is no change in the Total Income in the Intimation under Section 143(1) (for which i have sought RECTIFICATION)excepting reduction in Tax Liability after Relief which has got increased from Rs7,29,409 to Rs8.04.809 for not recognizing taxation under NEW REGIME and consequent increase in total interest and fee under 234A,234B,234C &234F(increase fromRs.5633 in the original return to Rs.17,396 assessed in the Intimation u/s 143(1)), the total of which has contributed to the TAX DEMAND of Rs.87,000 as against Rs 0 computed by the software (Utility Provided in the E-Filing Portal) when ITR3 was filed.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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12 November 2024 Good.
(Similar thing had happened in AY 2022-23 but it was corrected by RECTIFICATION).
Any reason for non acceptance of NEW regime at first instance?

Prakash G.S

Prakash G.S (Querist)
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12 November 2024 Kindly peruse the modified reply above where i have provided more details. As regards the further query, kindly note that that the MISTAKE was corrected in the RECTIFICATION ORDER U/S154, upon seeking rectification in the E-Portal, by recognizing that i had opted for the NEW REGIME in AY 2021-22 itself on 01-Jun- 2022 vide Form 10IE for which i have the computer generated E-Filing Acknowledgement. Upon Rectification, the TAX ASSESSED under 143(1) intimation became Zero without any change in the Total Income and Tax relief figures as claimed in ITR3 of the ITR3 remained as filed.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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13 November 2024 As per the data provided it seems to be mistake in processing of the ITR by CPC (unless the reason for the first processing the ITR filed under new regime, while processed under old regime can be actually ascertained).
You can appeal against the order.