Appeal against assessment order

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 April 2013 1) Our Return for 09-10 came up for scrutiny and the ITO issued an Assessment Order and sent us a Demand Notice.

We have filed an Appeal against the Order, but the ITO inists that we must pay the tax, immediately, whether we have filed an appeal or not.

Is this correct? That we have to pay immediately even though we have appealed against the Order?

2) If some TDS deductions have been deposited late, in May instead of within 31st March, but we have paid the penalty, etc at the time of deposit, can the ITO disallow such expenditure and add it back to the the income for the year

Prateek

Prateek (Expert)
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30 April 2013 If Appeal is filed and the entire tax demand has been appealed against you need not pay immediately. Write a letter to ITO and attach the acknowledgement copy of Appeal.

Ans2) In my best knowledge the ITO cannot disallow the expensiture

Querist : Anonymous

Querist : Anonymous (Querist)

01 May 2013 Thanks for your reply. To elaborate further, we had already paid our tax at the time of filing the return for 09-10. However, at the time of scrutiny, the ITO added back various items we showed as expenses like Fees paid to ROC, bad debt written off, etc. and demanded we pay tax on these. We appealed against this Order and he now says that unless we pay the tax despite our appeal, he will take further action.

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Prateek

Prateek (Expert)
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01 May 2013 You need to write a well drafted letter to your ITO stating that as the matter has been appealed to...it is subjudice etc....and hence we should wait for the appeal decision.

Also do a google search and you will be able to find some order passed by an appeal / court justifying non payment when appeal is pending.

At the same time may i suggest to speak to your ITO and convince him orally as in the long run it is not good keep your ITO antagonised.

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