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Outstanding demand is being adjusted with refund

CS Kaushik Kundu (Company Secretary) (180 Points)

30 January 2015

An Assessee has got mail from Income Tax that your outstanding demand is being adjusted with refund. His outstanding demand is for AY 2008-09 for which he had filed paper return. He has not got intimation U/S 143(1) for the AY 2008-09 till date. So, he can not understand why demand has been raised for the said year. He has filed ITR for AY 2014-15 in which he claimed refund and his refund is determind. Now, the Assessee is confused that whether he will pay outstanding demand or wait for further intimation. Because it is not clear that why demand has been raised.

I think, now a day, many Assessee is facing same problem. Please suggest.

Thanks in advance.

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7 Replies

Ram M. Dixit (CA Final (Author)) (376 Points)
Replied 30 January 2015

Revenue authority will send you intimation u/s 245 for such demand as well as refund.

Revenue can adjust the refund amount for demand raised with the prior approval of Commissioner.

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CS Kaushik Kundu (Company Secretary) (180 Points)
Replied 30 January 2015

He has got intimation U/S 245. But he has not received intimation U/S 143(1).

Ram M. Dixit (CA Final (Author)) (376 Points)
Replied 30 January 2015

Mitra, Notice u/s 245 is deemed as intimation u/s 143(1). No other notice will be served to you.

CS Kaushik Kundu (Company Secretary) (180 Points)
Replied 30 January 2015

But, it is not clear that why demand has been issued. In intimation U/S 143(1) it is clearly written.

Ram M. Dixit (CA Final (Author)) (376 Points)
Replied 31 January 2015

Have a look of notice u/s 245 again. The year, for which the said demand related to, would be mentioned, then see that year ITR. It may be for wrong availment of Basic Exemption Limit etc.

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Shrikant (Article Assistant) (21 Points)
Replied 01 February 2015

Dear kuashikji, in the intimation u/s 245, on second page it will be mentioned that the all damands o/s u/s 143(1), 143(3) along with respective assessment year & demand uploaded by AO or CPC, Bangalore.. If demand uploaded by CPC then u can request for intimation for Respective A.Y. on efiling a/c - my account - request for intimation.. Bt a point is that we can request only up to AY 2009-10.. If the demand is uploaded by AO then there will be no order or intimation on efiling a/c, in such case if u r in receipt of intimation u/s 143(1) or order 143(3) in paper form from dept. then u have chance to verify the same that demand is right or not..? & If not then, u r unable to get clear idea for such demand raised then u follow a possible way- u can write a letter to Respective AO - for requesting the same intimation in paper form..otherwise u can visit AO personally & get the intimation for the same in good faith.. The only way is that, bcz AO sends intimations to assessee on their registered asddress , bt which may be changed or not correct or failure of transporter.. Hence u can request in letter to AO for reasons for such demand raised..and get cleared for raised demand..

Jagannath (Internal Auditor) (36 Points)
Replied 01 February 2015

Hi.. My Dad also got such a mail. We submitted Form26AS of respective AY to the AO. (actually submitted to a guy in IT office who was collecting in such form). Then in Income tax website, you have an option to disagree the claim and provide reason. In the reason, provided that Form 26AS had been submitted to AO. Got refund in less than a month.