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Realized mistake (paid excess) in ay 2013-14 income tax return

D Inder (Retired) (38 Points)

12 August 2017

Hi,

Was checking some old ITRs and discovered that for the year AY 2013-2014 I made errors in my calculations and have paid 30% cess instead of the required 3% in the returns that I filed for myself and my wife!

The return was filed on paper. And because I did not realize then that I was indeed paying 30% cess (rather than 3%) the returns that I filed do not state that any "refund is due"!

I have not received any communication from the AO saying that the error has been noted and a refund determined / due.

The refund is about 5000 (e.g. - paid 5450 cess rather than 545) in each of the 2 returns, so a total loss of about 10K!

Is there any way I can request for a refund now ( 3 years late) without having to physically go to the Income Tax office and meet the AO?

Thanks in advance.

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10 Replies

CA Prashak Kumar Goyal (Pratice) (192 Points)
Replied 12 August 2017

Ref section 154.

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Kiran. S (CTO) (745 Points)
Replied 12 August 2017

Rectification u/s 154 is for such mathematical errors only. You should go to AO's office and point out the mathematical error. I hope you have ITRV stamped by them. You can go to jr officer below AO who sits out side. If you have a xerox copy of return it would be nice.

Poltu Ghosh (Job) (1865 Points)
Replied 12 August 2017

You cannot file any application u/s 154 as your return has not been processed yet. Write a simple letter to AO requesting to process the return u/s 143 (1). If the AO does not do then raise a grievance

Nikhil Bhat (Financial services) (133 Points)
Replied 12 August 2017

As soon as you file your return with no refund, the data is fed into the computer by the data operator. Once they find that the return has a refund it will be stamped as cancelled.

By now you must have got an email to collect your return and efile online. If Not then

go to the AO office ask the Junior officer who sits outside the cabin of AO. He will immediatly return the ITR stamped as cancelled. Further procedure will be explained by the jr officer as to how to file revised return and under what section .

I am sure the ITR will not get processed at local AO bcoz of refund

Poltu Ghosh (Job) (1865 Points)
Replied 12 August 2017

AO has no power to cancel any return. At most he can treat a return as defective. But in this case he cannot even treat it as defective. He has to process the return as per law. In processing the return if any refund is due he will allow it. No need to go to any junior. More over the time to file revised return has also expired.

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Nikhil Bhat (Financial services) (133 Points)
Replied 12 August 2017

In 2015 september the man sitting beside on the couch at AO office showed and told the ITR is cancelled. A big cross on ITR-V is made stamped "ITR-cancelled REFUND STATUS"

Mr Dev i will be inquisitive as to what they will do after 3 years. Check your email id for any communication at that time. For senior citizen they may consider refund at AO also after permission from CIT/Asst-CIT.

Poltu Ghosh (Job) (1865 Points)
Replied 12 August 2017

What the AO did in Sep 2015 was wholly illegal act. At that time too he had no power to cancel any return. Now forget what SO will do. It is obvious he will do nothing even if request is being made to him processing the return. But it is necessary since this case will meet justice only through grievance.

SHIRISH S S (Proprietor) (1030 Points)
Replied 12 August 2017

It is not cancellation .The ITR is returned to the assesse with a letter filed at wrong place. It is analogous to filing at wrong ward. The assesse is sent a mail or SMS alert that the ITR needs to be filed at correct ward or CPC in this case. There is a order no which the assesse has to write in his return and file. CPC accepts such return as filed before due date.

The returning of ITR is common and 5% of ITRs are returned marked as "ITR returned - Refund status" This stamp i have seen at professional ward 11(2).

D Inder (Retired) (38 Points)
Replied 07 September 2017

Apologies for the late response.

As mentioned in the opening post, no communication either in the form of a letter or an SMS or an email was ever received to highlight the error or to suggest that the tax return is invalid / cancelled / not accepted / must be rectified.

It is on my own that I discovered this error.