Income tax: demand of arrears

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 November 2011 I am a senior citizen regularly filing my IT returns. Two days ago, I received an e-mail communication from CPC, Bangalore, demanding payment of arrears of Rs 1586 for the AY 2001-2002. My assessments have been completed upto date including the current AY 2011-2012. During the assessment for AY 2010-2011, I was entitled for a Refund of Rs 320 which was set off against the arrears for AY 2001-2002, as stated in their notice u/s 143(1). During AY 2011-2012, I was entitled to a refund of Rs 2877( as reflected in 143(1) communication); they have however deducted 1266 as arrears for AY 2001-2002, along with interest u/s 220(2) of Rs 123, giving me a refund cheque of Rs 1389. Since I do not have the old records of 2001-2002 in my possession, I assumed that with the latest refund cheque, my dues for AY 2001-2002 as stated by them have been fully paid. So can someone please advise me how I should deal with the latest communication from CPC? Many thanks.

N.J.R

N.J.R (Expert)
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08 November 2011 Dear Sir,

As far as adj of wrong demands agst refund for A.Y. 10-11 & 11-12 are concerned, u should file Letter for rectification u/s 154 to ur local ITO stating therein facts of ur case alongwith proof of completed assessment of A.Y. 01-02 & Nil demand as agst Rs. 1586 as per their records. As they have adj refund of 2 yrs, u shld file 2 letters, one for A.Y. 10-11 claiming refund of Rs. 320 & another for A.Y. 11-12 claiming refund of Rs. 1389 (1266+123) [however, how u hv recd net refund of Rs. 1389 - i.e. R. Due 2877 - arrear 1266 - int 123 comes to Rs. 1488]. Also request ITO to delete demand arrear from DC Register as well as CPC's arrear demand list thro' these letters.

These letters will be helpful to u in future also if CPC again adj arrear of A.Y. 01-02 agst ur future refunds.

Thanks & Regards,