Appeal before CIT(A) due to denial of 87A rebate on special income for AY 24-25
This query is : Resolved
03 March 2025
Sir,
I had filed ITR for AY 24-25 in new regime on 27/06/24 with 87A benefit on special income and net tax liability became 0 but on 05/07/24, 87A rebate was removed and denied by CBDT and demand notice was issued for 16000/ tax. I paid the demand. Later after Bombay high court judgement I revised my ITR before 15th January 2025 for refund of 16000/ but to no avail after processing on 24/02/25. My question is :
Is it feasible to file an appeal before CIT(A) for 16000/(not a very less amount) and what would be it's consequences? Would I be served justice?
Thanks.
I had filed ITR for AY 24-25 in new regime on 27/06/24 with 87A benefit on special income and net tax liability became 0 but on 05/07/24, 87A rebate was removed and denied by CBDT and demand notice was issued for 16000/ tax. I paid the demand. Later after Bombay high court judgement I revised my ITR before 15th January 2025 for refund of 16000/ but to no avail after processing on 24/02/25. My question is :
Is it feasible to file an appeal before CIT(A) for 16000/(not a very less amount) and what would be it's consequences? Would I be served justice?
Thanks.
03 March 2025
Yes, appeal can be filed. Based on Mumbai HC's recent judgement you can get justice.
03 March 2025
do you plan to litigate on your own? If not, then I am not sure if the cost-benefit would suit you.
Also, you may want to wait for sometime and see if the department is taking any corrective measures, which may lead to suo-moto rectification by the AO.
Also, you may want to wait for sometime and see if the department is taking any corrective measures, which may lead to suo-moto rectification by the AO.
04 March 2025
Thanks Dhirajlal sir
04 March 2025
Thanks Nikhil sir, I'm also of the opinion that cost-benefit may not suit me if I consult with any CA regarding this. Let's see,time is there. Can you please tell me that as I've already paid demand amount,I can file appeal now right ?
04 March 2025
you can file the appeal but the delay in filing needs to be condoned by the CIT(A) for its acceptance.
04 March 2025
Filing appeal for the order dated 24/02/2025 is not delayed. You have enough time for appeal. (30 days from the date of order.)
04 March 2025
Nikhil Sir,
Original ITR filing : 24/06/24
Processed with demand due : 23/09/24
Demand adjusted with tax paid : 16/10/24
Revised return filing in hope of refund of the demand paid : 15/01/25
Processed revised return with no demand : 24/02/25
Appeal filing deadline 30 days from serving notice,so 30 days would be calculated from which date sir for delay of filing to be condoned by CIT(A) ?
If you just can clear a bit,
Thanks sir
Original ITR filing : 24/06/24
Processed with demand due : 23/09/24
Demand adjusted with tax paid : 16/10/24
Revised return filing in hope of refund of the demand paid : 15/01/25
Processed revised return with no demand : 24/02/25
Appeal filing deadline 30 days from serving notice,so 30 days would be calculated from which date sir for delay of filing to be condoned by CIT(A) ?
If you just can clear a bit,
Thanks sir
04 March 2025
Dhirajlal Sir,
Original ITR filing : 24/06/24
Processed with demand due : 23/09/24
Demand adjusted with tax paid : 16/10/24
Revised return filing in hope of refund of the demand paid : 15/01/25
Processed revised return with no demand : 24/02/25
Appeal filing deadline 30 days from serving notice,so 30 days would be calculated from which date sir for delay of filing to be condoned by CIT(A) ?
So which date to consider for counting 30 days from?
Thanks a lot
Original ITR filing : 24/06/24
Processed with demand due : 23/09/24
Demand adjusted with tax paid : 16/10/24
Revised return filing in hope of refund of the demand paid : 15/01/25
Processed revised return with no demand : 24/02/25
Appeal filing deadline 30 days from serving notice,so 30 days would be calculated from which date sir for delay of filing to be condoned by CIT(A) ?
So which date to consider for counting 30 days from?
Thanks a lot
04 March 2025
You can file appeal against the order dated 24/02/2025, as the refund was denied as per revised return filed on 15/01/2025.
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05 March 2025
Thanks Dhirajlal sir
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05 March 2025
You are welcome.
05 March 2025
so, if you have no demand in the latest order, what are you challenging? what are the grounds of that appeal?
05 March 2025
Nikhil sir,
How there would be any demand when I've already paid like an honest taxpayer ? ITD can't serve demand notice over and above the latest demand which has been paid already. I revised because till 15th January 25, 87A rebate was available in utility after Bombay high court judgement which was denied after 5th July 24 and there was a probability of getting back the demand amount. Had I not paid demand earlier,ITD would have sent outstanding demand notice now along with interest due which I could have contested by filing an appeal in form 35.
But now can't I challenge denial of refund of my earlier paid demand in the court
of law ? Ground would be Bombay high court judgement and demand paid despite this judgement although it came later which should have been waived off referencing Pune CA case for his mother and Mrs Sunita Gupta case of Bombay where order passed by JCIT (A)-6 MUMBAI came in her favour and AO was directed to allow the benefit of 87A rebate as per provision.
The appeal was allowed.
The Assessing Officer was directed to allow the deduction under section 87A as per provisions.
The grounds of appeal were consequently allowed for statistical purposes.
I'm not an advocate/lawyer sir. My only fault is that I've paid the demand being an honest taxpayer. You can also help me in this regard if you want.
Thanks
How there would be any demand when I've already paid like an honest taxpayer ? ITD can't serve demand notice over and above the latest demand which has been paid already. I revised because till 15th January 25, 87A rebate was available in utility after Bombay high court judgement which was denied after 5th July 24 and there was a probability of getting back the demand amount. Had I not paid demand earlier,ITD would have sent outstanding demand notice now along with interest due which I could have contested by filing an appeal in form 35.
But now can't I challenge denial of refund of my earlier paid demand in the court
of law ? Ground would be Bombay high court judgement and demand paid despite this judgement although it came later which should have been waived off referencing Pune CA case for his mother and Mrs Sunita Gupta case of Bombay where order passed by JCIT (A)-6 MUMBAI came in her favour and AO was directed to allow the benefit of 87A rebate as per provision.
The appeal was allowed.
The Assessing Officer was directed to allow the deduction under section 87A as per provisions.
The grounds of appeal were consequently allowed for statistical purposes.
I'm not an advocate/lawyer sir. My only fault is that I've paid the demand being an honest taxpayer. You can also help me in this regard if you want.
Thanks
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