Demand notice - a.y. 2013-2014

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Dear All,

I am an accountant of a parternership firm and we have received one email from intimations... @ cpc.com showing a demand for A.Y. 2013-2014. Please note that we have NIL turnover for the said A.Y. Now while Efiling the ITR the depreciation amount is once credited from the total expenses and the same amount is erroneuosly reflected in the profit / gain field on which the tax demand has been raised. I met the A.O. and asked him to rectify the same from their end but to no avail. Now, the case has become time barred for both revise return and filing for appeal. Kindly give your guidance as the tax amount is Rs. 39,000/- which is susbtantial for a small partnership firm.

P.S. : We have brought forward losses.

Thanks.

Replies (6)

Have you received copy of the order. Which date it was passed /issued.

Rectification u/s. 154 is possible.

Time-limit for rectification

" No order of rectification can be passed after the expiry of 4 years from the end of the financial year in which order sought to be rectified was passed. The period of 4 years is from the date of order sought to be rectified and not 4 years from original order. Hence, if an order is revised, set aside, etc., then the period of 4 years will be counted from the date of such fresh order and not from the date of original order"

Thank you very much, will visit the A.O. and file the rectification letter. Please note that we have not received any order or the order u/s 143(1) e-mailed to us has been deleted and hence we are not aware of any such demand raised prior to the reminder e-mail received day before.

What if the A.O. refuses to accept the rectification letter or refuses to make the rectification do we have any option?

Thanks

Regards.

You can request AO for assessment order having demand, and add that no. as reference to your  rectification  request letter.  No, AO will not refuse, its within time limit.

Thank you, submitted the letter to the clark. Do I need to meet the A.O.? can I submit my online reponse on the income tax portal saying rectification letter is filed?

Thanks

Regards.

File the same rectification request online. For reference no. of order, download the order from the page outstanding demand (a red tab beside the demand). Also disagree the demand stating recticication filed.  Follow up  with AO, if you wish to expedite the matter.

Thank You Sir,

Filed online response, will visit the A.O. on Monday. Thanks again for your time and valuable feedback.


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