Income Tax – Rectification of Mistakes pointed out by CPC – BCAS to take up the matter
A large number of taxpayers are facing tremendous difficulties in getting rectification order arising from the mistakes noticed in the intimation under section 143(1)(a) of Income-tax Act, 1961 issued by the Central Processing Center (CPC) resulting in erroneous tax demands and severe hardships to the taxpayers.
It seems that the problem become more acute due to lack of clarity about the methodology of getting such mistakes rectified and also on account of the fact that the applications for rectification made by the assessees are remaining pending without any proper action.
The major mistakes observed in the intimation are:
++ TDS Credit not given
++ Adjustment of wrong demand for earlier years based on erroneous records against the legitimate refund due to the assessee in subsequent years
++ Wrong adjustment while computing gross total income
The Bombay Chartered Accountants' Society is actively considering taking up this matter with the appropriate authorities and requests all the members to send a brief summary of the difficulties without disclosing identity of the concerned assessee. The information sent by the members will remain confidential.
Based on the response received from the members, the Taxation Committee of the Society proposes to compile a detailed representation and vigorously take it up with appropriate authorities to obtain administrative relief where feasible.
This is really a major problem and it is laudable that the distinguished society is taking up the matter.