DIRECTORATE OF INCOME TAX (SYSTEM)
ARA Center, Ground Floor, E-2, Jhandewalan Extension,
New Delhi — 110055
F.No. System/ITBA/Instruction/Assessment./Demand Adjustment by AO u/s 245/2019-20/1906
All Principal Chief Commissioners of Income-tax/ CCsIT (By Name)
All Principal Commissioner of Income-tax/CsIT/CsIT(CO) (By Name)
All Commissioner of Income Tax (Appeal) (By Name)
This is in reference to the subject mentioned above. This functionality is available w.e.f. 17th February, 2020 in Income Tax Business Application (ITBA).
2. The functionality of demand adjustment by AO u/s 245 can be accessed while passing assessment order, rectification order into the ITBA system. The ITBA Portal can be accessed by entering the following URL in the browser: https://itba.incometax.gov.in
The path for the accessing the functionality of demand adjustment u/s 245 is: ITBA Portal – Login 4 Modules 4 Assessment/ Rectification 4 Worklist 4 Relevant Workitem 4 Order Generation screen.
3. In case, refund is determined in Computation of Assessment, Rectification then, following 4 below mentioned options regarding demand adjustment u/s 245 shall be available through ITBA. Assessing Officer can proceed with either of the options as the case may be:
a. 245 Notice to be issued by CPC: Notice u/s 245 will be issued by CPC on selection of this option by the Assessing Officer. User can proceed with assessment/ rectification order generation. Further, demand will be adjusted by CPC.
b. 245 Notice to be issued by AO: On selection of this option, user shall click on Demand Adjustment u/s 245. Screen for Demand Analysis will open. All the demand(s) relating to the PAN will appear. User shall select the demand against which Notice u/s 245 needs to be issued by AO. User shall Generate Notice u/s 245. Notice u/s 245 will be issued and will be available in View/ Download Letter/ Notice/ Order. Based on the assessee’s response, AO can enter/edit the Amount to be adjusted against the refund so determined. This amount can be entered from 2 navigation options mentioned below depending on order passing is done or it is still pending to be passed by the AO:
Option-1: In case order is not passed yet (e.g. -There is time available to the AO to pass the order i.e. Time Barring is not expiring in near future and AO wants to select the demand adjustment u/s 245 before passing of order):
Go to relevant workitem of Assessment/Rectification → Order Generation Screen → Demand Adjustment u/s 245 → Enter amount to be adjusted → Submit to CPC
Option-2: In case order is passed already (e.g. where time barring is approaching in near future) but Refund is pending to be released after demand adjustment:
Go to Recovery Module →Demand Analysis screen → Enter amount to be adjusted →Submit to CPC
Demand will be adjusted by CPC as per the demand selected by AO for adjustment.
Note: This option is only available for Online Assessment/Rectification Order and will not be available for Manual Order Upload. For Manual order Upload, Option 3a, 3c and 3d will work.
c. No Adjustment — No need for demand adjustment: On selection of this option, button for demand adjustment will be enabled. On click Demand Adjustment u/s 245 button, screen with all the previous demand(s) will open for marking the recoverability status against all the previous demands. Further, user can proceed with assessment/ rectification order generation. In this case, no demand will be adjusted by CPC.
d. Taxpayer consent obtained for demand adjustment, 245 Notice not to be issued: On selection of this option, button for demand adjustment will be enabled. On click Demand Adjustment u/s 245 button, screen with all the previous demand(s) will open. User shall enter the recoverability status against all the previous demands. Further, user can proceed with assessment/ rectification order generation. In this case, demand will be adjusted by CPC based on AOs selection.
4. Post adjustment based on the above options, AO will be able to view and generate refund intimation sheet. Navigation: ITBA Portal → Login → Modules → Assessment/ Rectification → List of Demand/ Refund Orders → Pending for Refund/ Adjustment Intimation Sheet. This will be required to be issued to assessee which contains the final amount of refund, interest u/s 244A, TDS u/s 195 (if any, deducted in case of NRI), demand adjusted u/s 245 (if any) and final amount of refund released to assessee and bank account details in which refund released.
5. Users as mentioned above will need their individual name based department email IDs and RSA tokens. The username and passwords will be communicated on their respective email ID. The log in to the system will be through the username and password (sent on individual email ID) along with the RSA token over the Tax net nodes.
Users are advised to contact helpdesk in case of any issues in respect of the ITBA.
a. URL of helpdesk – http://itbahelpdesk.incometax.net
b. Help desk number — 0120-2811200
c. Email ID — email@example.com
d. Help desk Timings — 8.30 A.M. — 7.30 P.M. (Monday to Friday)
This issues with the prior approval of the Pr. DGIT(System), Delhi
(Ashim Kumar Modi)
CIT(ITBA), New Delhi
1. The PPS to Chairperson, Member(Admn.), Member(L), Member(Inv.), Member(IT& R), Member(TPS&S.), Member(A&J), CBDT for information
2. Pr. DGIT(Systems), New Delhi
3. The Web Manager with request to upload instruction on www.irsofficersonline.gov.in
4. ITBA Publisher with request to upload instruction on http://itba.incometax.gov.in
(Ashim Kumar Modi)
CIT(ITBA), New Delhi