I have received a rectification order u/s 154 to pay an amount of 30000. however there is an error in the IT computation by the department. I have filed for rectification but without assigning any reason or basis, the department sent again the demand. They have also adjusted my current year refund partly to the demnd. I have applied to AO. Meanwhile can I pay the amount under protest or any other head pending my appeal with AO, JCIT and ITAT in that order? If I win the appeal would they refund the total amount recovered and paid by me in protest? Meanwhile they are adding 1% int per month increasing the penalty hugely. Is there any advise from any qualified professional in the forum?
May I know what is the reason for the demand raised by the Income Tax Department? Is it because of 87A rebate being disallowed in processing?
Thanks,
CA. Pulkit Garg
Hey @TKRam ,
Can you explain the error in the IT computation?
Thx for your help.Here is the gist
Discrepancy Details:
• Net Taxable Income as per my Return: ₹3,82,710 (Tax Liability: Nil)
• Net Taxable Income as per Intimation u/s 143(1): ₹5,16,010 (Tax Demand: ₹28,370)
Reason : Erroneous Disallowance: ₹1,33,296 under Section 37(1)
Key Points:
- I had already disallowed an amount of ₹1,70,970 in my original return under “Schedule BP” as expenses of capital nature.
- The disallowance made by CPC under Section 37(1) results in a duplication, as the same expense was already disallowed in my return.
I filed ITR 3 and accounts audited by CA
Thx for your help.Here is the gist
Discrepancy Details:
• Net Taxable Income as per my Return: ₹3,82,710 (Tax Liability: Nil)
• Net Taxable Income as per Intimation u/s 143(1): ₹5,16,010 (Tax Demand: ₹28,370)
Reason : Erroneous Disallowance: ₹1,33,296 under Section 37(1)
Key Points:
- I had already disallowed an amount of ₹1,70,970 in my original return under “Schedule BP” as expenses of capital nature.
- The disallowance made by CPC under Section 37(1) results in a duplication, as the same expense was already disallowed in my return.