The Income Tax Department has given relief to the taxpayers regarding refund adjustment against the outstanding tax. Tax officials will now have to take a decision in such cases within 21 days. This decision will reduce litigation. The Directorate of Income Tax (Systems) said that the 30-day time limit given to assessing officers to take a decision has been reduced to 21 days.
According to a statement, if the taxpayer does not agree to the adjustment or partially agrees, the case will be immediately referred by the Centralized Processing Center (CPC) to the Assessing Officer, who will give his opinion to the CPC within 21 days that the adjustment has been made. may or may not go.
Will have to answer the complaint in 21 days
Rajat Mohan, Senior Partner, AMRG & Associates, said that in many cases involving refund adjustments, the CPC found that wrong classification of demand or non-receipt of response from the assessing officer resulted in wrong adjustment of refund. In such a situation, unnecessary litigation took place. He said that after the latest instructions, taxpayers’ complaints will have to be answered within 21 days.
The DIT (Systems) in an instruction to the field formation said, in some cases, as a result of issue of information under section 245, the assessees had replied on the demand portal that the demands are incorrect. Such wrong demand has been stayed by the Assessing Officer/TAT/High Court.
It has been pointed out that wrong classification of such demand as ‘correct and collectible’ or non-providing of response by the assessing officers to the response of the assessees has led to incorrect adjustments of refunds against such demands by CPCs, leading to complaints. And there has been litigation.