23 April 2011
one of my client has received a letter from IT department regarding adjustment of refund granted to him against demand raised from him by the department. IT departmrnt has suomoto adjusted the refund against demand where as we are still figthing case against department regarding that demand. pls suggest what accounting treatment in this particular case is needs to be done.
If you are still fighting for the case, Please do not pass any entry for the adjustment for the refund. May be you can go for appeal. You can pass entry once you decided to accept the adjustment made by Tax department.
CAclubindia
