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Error in form-16, who is liable ? any way to appeal ?

ITR Filing 458 views 1 replies

Jayanth A

Student CA Final

42 Points Posted on 17 October 2014

Again, linked to 2 more posts I made since last night... we found some issue in the Form-16 issue by my sister's employer... they have permitted around 1.12Lacs u/s VI-A ... and this 12thousand excess, way back in 2008 was reflected in ITR filing, and is possibly the cause of the demand notice u/s 143(1).

In this case, who is liable for the mistake. This 12thousand difference is possibly now cause of the demand of 7.6Lacs being demanded by IT dept. How is an ordinary person supposed to pay this amount ? Is there any way to appeal against the penalties, especially because we never received the demand notice, and I had checked the IT-dept website and until day before yesterday they had no entries under the 'My Accounts' > 'Outstanding Tax Demand' or under 'My Account' > 'Refund or Demand' section. Nor did they ever send any email, though my same email-id was specified in the ITR-2 form used to file return, way back in 2007.

So, can the penalties be challenge, or be appealed against ?

Replies (1)

Mohan

Accounts Mgr

209 Points Posted on 17 October 2014

I cant understand how the 12thousand difference caused for 7.6 lakh of huge demand. Anyway you may go for 154 rectification of mistake in assessment order if you found any mistake done by assessing officer i.e., in case of not giving credit of TDS. Further you may prefer CIT(Appeals) on the demand. Moreover Form 16 issued by the employer based on the details given by the employee and not fixed /assured your tax liability. It is declaration that the TDS has been credited and remitted to the I.T.Dept only. But the income tax return may vary the Form-16 figures. Tax Payer should beware of the figures before filing of return. Hope you will get justice from the dept. good luck.