ADVISORY NO.: 45
Dated:- 14.07.2022
0/o PCDA(0) Pune, Public Relation office (PRO)
Subject: Income Tax Demand Notice under section 143(1) due to mismatch of Tax credit for the Financial Year 2021-22 (AY 2022-23).
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Your kind attention is invited to the intricate contentious issue of reflecting o/s Income Tax Demand shown against more than Army Officers Central Data Processing Cell of IT Deptt. Bangalore had raised since multiple Income Tax demands under section 143(1) for Financial Year 2021-22 (Assessment Year 2022-23) against some of the Army Officers.
In this regard it is submitted that 0/o PCDA (0), Pune is dealing with Pay and Allowances of the 55,000 Indian Army Officers, being the DDO with TAN No. PNEC06129E this Office is responsible for also deduction of Income Tax, filing of TDS i.e. Monthly and Quarterly returns and thereafter issue of Form 16 at the end of Financial Year to all the Army Officers in order to enable them to file their Income Tax Return (ITR) in time and in correct manner.
Accordingly Form 16 for the Financial Year 2021-22 was issued to all Army Officers. Numerous complaints are now being received from the Army Officers regarding receipt of Income Tax demand notice under section 143(1) stating that Form 26AS does not contain partial amount of TDS with respect to the TAN mentioned in schedule TDS1/TDS2/TCS and it is showing outstanding demand against a few Army Officers which is not correct and totally untrue Representations are being received from aggrieved Army Officers to review, reconcile and rectify the anomaly by taking up the matter with IT Authority for its rectification, redressal and redemption.
Here it is pertinent to state that TDS amount deducted from Army Officer’s Pay and Allowances by 0/o the PCDA(0), Pune have been correctly deposited to Income Tax Authority against the Officer’s PAN No. through TDS quarterly return. Total TDS amount has also been reflected in TRACES Part A of Form 16 as well as Form 26AS. Hence, so far an Army Officer as a Tax payer 86 PCDA (0) Pune as a Tax depositor is concerned, the matter is clear and no anomaly is prevailing at their end.
Needless to mention sometimes there may be a chance of probability of mistake in any order passed by the Assessing Officer (ITO). In such a situation, scenario, mistake which is apparent from the record can be rectified under Section 154. Under this section to rectify any mistake apparent from the records, Income Tax Authority may, either
(a) Amend any order passed under any provisions of the Income Tax Act.
(b) Amend any intimation or deemed intimation sent under section 143(1).
PCDA (0) Pune vide DO letter No. PCDA (0)/ Sectt/ IT dated: 13/07/20222 had already taken up the matter with PCIT Pune/PCIT Bangalore (CTC, PCIT, Bangalore for their immediate intervention, redressal rectification of the IT related anomaly at the earliest.
In view of above all the Army Officers are hereby advised and kindly requested to denounce and not to accept, turn down & reject the notice vehemently and requested to file rectification under section 154 with a request to rectify Income Tax Demand Notice served under section 143(1). Copy of the same can be given to this Office for ready reference, information 86 further action.
This is for your kind information please.
This is issued with kind approval of PCDA (0), Pune.
Regards,
Jai Hind
Shri Lehana Singh, IDAS
(Dy. CDA)
Email- lehanasingh.dad@hub.com
Tel. No. 02026401105
Download Advisory on Section 143(1) Income Tax Demand Notice due to mismatch of Tax credit
Like Army Officers Mismatch Credits case. I am experience same situation. After filing Income tax return for the Financial Year 2021-22 (Assessment Year 2022-23), I also received a demand notice under Sec.143 (1). In my case all the Credits i.e. TDS deducted by Banks (on Interest on FD’s), Mutual Funds (on dividends), on my Pension etc is shown as mismatch credits. On raising the grievances, a reply is received stating that ”Dear Taxpayer, CPC could not give credit for TDS due to incorrect entry of deducted year in Schedule-TDS. Request you to verify the same and file the valid revised return u/s 139(5) with correct details. How to make a correction in Schedule-TDS?
Reaction (Take aways):
1.Unclear but quite confusing; it appears, what has been sent by the CPC is “INTIMATION” raising a DEMAND. Not any advance Show Cause Notice calling for objection as required to be sent as envisaged/mandated.
2.Said to have been sent –
(a)only to some officers, not all; and
(b)only in cases of ‘mismatch’, raising a partial demand for the difference.
Premised so, under the SYSTEM (-software) obviously does not permit disallowance of TDS should there be no ‘mismatch’.
If so, INTIMATION raising a Demand for the entire TDS as reflected in 26AS could be inferred to have been done manually; not auto-done by the System.
In short, the System appears to have not only a WILL of its own but also seemingly suffers the from the malady of ‘selective amnesia’ contrary to the belief that is possible only in case of human beings ?!?
For an insight the Article @ https://taxguru.in/corporate-law/technological-advancements-artificial-intelligences-impact.html
I sitting at Lucknow am perfectly OK. You guys fighting at Border also fight the Income Tax Department. I am safe