Problems faced by the Assessee, which were supposed to be resolved by the Income Tax Department in Pandemic Times.

FEW POINTS RESTRICTED TO REFUND / DEMAND ISSUES By INCOME TAX DEPARTMENT>

DIFFICULTIES FACED BY THE ASSESSEE inspite of the fact that the department was supposed to address these issues in the Covid 19 times.

1.   In case several old Demands are reflecting in the Outstanding Demand Table, it’s very difficult to get those vacated either by contacting CPC or by praying before AO, in spite of the case been adjudicated in favour of the assessee.

2.   Online Disagreeing with the demands is of no use because the response filed by the assessee, as disagreed, is not addressed by the Department.

3.   In such case, whenever a refund arises for a particular year, it automatically gets adjusted against prior year’s incorrect demands.

4.   When a refund adjustment is done against prior year’s demands, the detailed break-up as to how much refund was issued and how much amount got adjusted against which prior year’s demand is not given to the assessee.

5.   There are instances, where a refund got adjusted against a prior year’s demand, in-spite of that the said demand still exists in the Outstanding Demand Table.in 26AS

6.   There are instances, where a refund got issued on Monday for AY 2006-07 and then on Friday while issuing refund for AY 2012-13, a part of amount was adjusted against AY 2006-07.

7.   There are instances, where the case of the assessee passes through several appellate forums like CIT(A), ITAT etc getting reliefs, but the demand raised u/s 143(3) remains untouched in the Outstanding Demand Table for years without giving effect to the subsequent orders.

8.   There are instances, where the assessee has pre-validated its Bank Account in the Income Tax Portal, which has been validated by the Bank, even then the refund issued by the Department fails. That failure doesn’t reflect under the re-issue of refund request. Years have passed, no stone has been left unturned by the assessee but still he fails to get that refund.

9.   There are instances, where Grievance raised in CPGRAMS and e-Nivaran is closed without the actual redressal of the concerned issue, leaving the assessee helpless. Because the assessee only raises such grievance when his issue is not addressed by the Department.

10. There are instances, where assessee submits online request for pre-validating his Bank Account, by updating all correct details, but even after several days, the said request doesn’t gets validated by Bank, for the reasons not known to the assessee. This blocks the refunds.

11. Interest Demand raised u/s 220(2) is another huge problematic issue.

a.   Can the process of raising demand u/s 220(2) by CPC be an Automatic Process

b.   Interest Demand u/s 220(2) is linked to delay in payment of Principal Demand

c.   The Principal Demand can get vacated either by way of a payment or it becomes void-ab-initio by virtue of a subsequent Appellate Order in favour of the assessee

d.   Raising an interest demand in case of a delayed payment is understandable but is it justified when the principal demand itself gets deleted as a result of a subsequent order

e.   Does CPC has access to the entire subsequent orders and its result with respect to the original principal demand

f.Even the Jurisdictional Assessing Officer asks the assessee to submit all the subsequent orders while providing an appeal effect

g.   In such circumstance, it does not looks feasible that the CPC is aware of or automatically has an access to the results of all subsequent order

h.   How it is possible for CPC to analyze that whichever demand gets deleted, is only by way of a delayed payment, because irrespective of the facts, they raise interest demand

i. There are a number of instances where CPC has raised exorbitant interest demands u/s 220(2) for prior years, in spite of the case being decided in favour of the assessee and the principal demand itself, getting deleted

j. In addition to that, the CPC does not even provide an option to the assessee to online submit a response (as disagreed) against the interest demand so raised

k.   The only option given in the portal against an interest demand is “click here to pay tax”

l. How CPC is so sure that the interest demand so raised is absolutely correct and assessee has no opportunity and option even to disagree

m.  Neither the assessee is provided an opportunity to disagree with such interest demands, nor the CPC deletes those demands and nor the assessee makes payment of such demands as they are incorrect

n.   Then in all subsequent refunds claimed by the assessee in the ITR, at the time of processing of ITR, CPC starts sending notice for adjustment of refunds against the outstanding demand u/s 245

o.   Irrespective of whatever response is online filed by the assessee, the CPC adjusts the refunds against those demands

p.   Why would the assessee suffer for such an incorrect action taken by CPC

q.   Who would delete the incorrect interest demand raised u/s 220(2) by CPC