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Question of the year ? u/s 143(1), is it possible ???

PALASH (Nothing) (2000 Points)

20 June 2014

" IS IT POSSIBLE ?????? REFUND ADJUSTED AGAINST SELF ASSESSMENT TAX/DEMAND BUT IN FACT NO REFUND DUE IN 26AS "

1) Self Assessment tax paid of Rs 4855/= ( with 234A ) for A.Y 2013-14 ( Client is a businessman ) &

2) No refund / demand due ( as per 26AS ) from a.y 2009-10 to 2013-14.

But as per Tin-NSDL site for a.y 2013-14, refund status was --> Adjusted against outstanding demand. (CIN-BSR code 0005743 Challan deposit date - 25042014 Challan Sequence no - 32641) .

Question
1) What's the meaning of the above status ?
2) Is it possible ? if yes pls clarify , if no then also clarify .

Need an expert opinion...
Regards.

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5 Replies

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 20 June 2014

first of all, 26as does not show status of any demand or refund, so never think that way. now, here you need to collect all intimation u/s 143(1) from AY 2009-10 to till date to check for any demand or refund calculated by AO only then you will be able to verify this adjustment.

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Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 20 June 2014

this adjustment is only possible if any demand had been raised by AO and which was not paid till date. so the department while calculating the refund adjusted the demand along with interest. if any amount is still left then it is refunded to assessee or carried forward next year for further adjustment.

PALASH (Nothing) (2000 Points)
Replied 21 June 2014

Thanks for your reply , but as far as your reply is concern you said that " 26as does not show status of any demand or refund, so never think that way "

what's wrong with you ?????

26AS shows refund due not refund status which i mentioned earlier clearly ,

so my question to you that , what is 26AS ? Do you know that ?? you know what is Tax credit statement ??? 26AS shows total tax credit of an assesses ,it's not only TDS,TCS, but also Self assessment tax but not DEMAND STATUS , Got it,

So, first of all you have to know all the matters , you have to go through all the basic matters before reply of any query of Palash Raksh*t.

Second one , in my query , i said clearly that there is no question of Demand since a.y 2009-2010, and it's an e filing case so, as per Demand Status " no demand raise either by CPC Bnagalore or Local AO since a.y 2009-2010 "

Then how can you imagine that " this adjustment is only possible if any demand had been raised by AO ??? "

Your answers are not upto the mark,

Anyway thanks.

pavan kumar (CA Final , CMA Final) (202 Points)
Replied 21 June 2014

Once check in Income Tax efiling Website if there are any Outstanding demands and form 26AS shows the following details

tax deducted/collected, deposited on our incomes
Income Tax refund granted to us
Tax paid by us as self assessment tax
High value transaction(if any) reported by our bank to Income Tax Department

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 21 June 2014

@ palash.. i respect your knowledge.. but after your reply i was really confused and checked 26AS of one of my client whose refund was due to see whether 26AS shows any refund due. but it is not showing anything there. i found a column which shows "details of refund paid" but not refund due.

as far as my reply regarding adjustment is concerned, i didnt say same has been done in your case. it is just a probability and you should verify it with intimation u/s 143(1) for AY 09-10 onwards. the same adjustment was done last year for one of my client and that is why is said it is possible. even today i have received a notice u/s 245 for set off of demand against refund.

i dont find any other reason for adjustment of refund.