Letter [F.NO. DIT(S)-III/CPC/2012-13 - 14161-78], dated 5-11-2012

What this is

Letter [F.NO. DIT(S)-III/CPC/2012-13 - 14161-78], dated 5-11-2012 was issued by the Central Board of Direct Taxes on 5 November 2012. Its subject is Clean up of demand uploaded to CPC FAS before issue of refund in cases processing of e-returns of A.Y. 2012-13.

What it does

Requires Assessing Officers to check arrear demands before those demands are set off against refunds. Cases where a refund was claimed in an electronically filed return for assessment year 2012-13 and where the Assessing Officer had uploaded a demand to the Centralised Processing Centre portal were extracted and put on the departmental network for the officers to work on. Each Assessing Officer must verify the uploaded arrear demand and certify that it is correct before it is taken up for adjustment against the refund, so that taxpayers are not put to undue hardship and grievances are not generated. Each Chief Commissioner is to monitor the verification and have the demands certified within twenty one days, and send a compliance report to the Zonal Member with a copy to the Commissioner of Income-tax at the Centre.

Why it was issued

The department wanted to ensure that a refund for assessment year 2012-13 was not adjusted against an arrear demand that had not been verified, which was causing hardship and grievances.

Who it reaches

• Assessees who claimed a refund in an assessment year 2012-13 electronic return
• Assessees carrying an old demand uploaded to the Centre's portal
• Assessing Officers holding those arrear demands
• Chief Commissioners monitoring the exercise

The instrument, as the Board published it

Clean up of demand uploaded to CPC FAS before issue of refund in cases processing of e-returns of A.Y. 2012-13
letter [F.No. DIT(S)-III/CPC/2012-13 - 14161-78], dated 5-11-2012
On the above subject, details of cases where refunds have been claimed in e-Returns for A.Y. 2012-13 and where assessing officers have uploaded demands to CPC Portal, have been extracted and place on I-Taxnet [Annexure]. The data can be accessed on following path:
Resources-Downloads-DIT Systems-Processing of E-Returns of A.Y. 2012-13-Clean up of Demand uploaded to CPC
2. The assessing officers are required to verify uploaded arrear demands in CPC portal in these cases and certify their correctness before they are considered for adjustment against refunds. This is to ensure that no undue hardship is faced by taxpayers, consequently generating grievances.
3. Each CCIT may, therefore, monitor this verification process and certify these demands within a period of 21 days. A compliance report may also be sent to respective Zonal Members, CBDT with copy to CIT (CPC) Bangalore at his e-mail id: cit. cpc. bangalore@incometaxindia.gov.in
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What to watch

• The department's own instruction is that a demand must be verified and certified as correct before it is considered for adjustment against a refund - that is what to point to where an unverified demand has been set off.
• The twenty one day period is a departmental monitoring timeline, not a period after which an assessee gains any right.
• It is an internal communication about the cleanup of uploaded demands and does not itself decide whether any particular demand is valid.

Where you meet it

Where a refund for assessment year 2012-13 was adjusted against an old demand the assessee says was already paid, reduced in appeal or never correctly raised.

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