However, erroneous intimations as described above results in defeating the purpose of reducing tax litigations and also hits out at bolstering simplification of tax procedures. We appreciate the efforts of the Government and Tax Authorities in reduction of litigation by introducing schemes like Vivad-se-Vishwas, increase in monetary limits for filing department appeals, etc. The issue is further amplified on account of assessees not being able to disagree with the adjustments made due to technical problems in the new website. However, such erroneous intimations would defy the purpose of the section by proposing invalid adjustments. Section 143(1) intends to provide a line of communication between the assessing officer and the assessee to provide clarification and agree on the accurate computation of total income. This would lead to a situation where multiple adjustments proposed u/s 143(1) would be processed without any response from assessees due to the bottleneck in the IT portal and thereby creating confusion and chaos in the minds of the assessees and the Tax professionals alike. While such adjustments are being intimated to the assesses through the intimations u/s 143(1), the glitches in the Income Tax portal are causing hindrances in responding to those intimations, which would ultimately result in automatic adjustment of the invalid demands proposed against future refund amounts.
This would again result in invalid addition to income offered and also in reducing the total loss to be carried forward, in case where there is loss. In such cases, though the amounts have been reported as “paid on or before the due date for furnishing the return of income of the previous year u/s 139(1)”, the intimation issued u/s 143(1) of the Act proposes to disallow the expenses by erroneously considering that the dues have not been paid before the due date for furnishing the return of income. However, the intimation issued u/s 143(1) of the Act proposes to add such amounts to total income, which would result in doubly offering the same income and also in reducing the total loss to be carried forward, in case where there is loss.ī) Statutory dues paid and allowable upon payment u/s 43B of the Act are reported under clause 26 of Form 3CD, and the same is reflected under clause 10 of Part A – OI (Other Information) of ITR-6. In such cases, though the assessee has correctly offered those amounts under other heads of income.
The same warrant immediate measures to resolve and address them.Ī) Amounts not credited to profit and loss account are reported under clause 16 of Form 3CD, and the same is reflected under clause 5 of Part A – OI (Other Information) of ITR-6. We would like to bring to your kind attention few of the issues related to the intimations being issued under section 143(1)(a), which are elaborated as below. An adjustment shall be made only after giving intimation and providing an opportunity to the assessee to respond within thirty days of issue of such intimation. Section 143(1)(a) of the Act provides that where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, such return shall be processed after making specific adjustments as mentioned under clauses (i) to (v) of 143(1)(a) to the compute of the total income or loss. We humbly request your good selves to take cognizance of these issues and hardships and appeal to your good selves to provide amicable resolutions on the same.
#TAX ACT S CORP UPGRADE#
While such upgradation is aimed at making e-filing process smoother, simpler and smarter, it is well known that the portal is facing a few teething troubles, which are inescapable in the beginning when any new upgrade is launched.Īt this juncture, we would like to bring to your kind notice few of the hardships that assesses are facing regarding adjustments being proposed u/s 143(1)(a) of the Income-tax Act, 1961 (the Act). We appreciate the sweeping steps taken by the Income Tax Department to revamp the Income Tax website by launching the much-awaited the e-filing portal 2.0. KSCAA is primarily formed for the welfare of Chartered Accountants and represents before various regulatory authorities to resolve the problems/hardships faced by Chartered Accountants and the business community.
#TAX ACT S CORP REGISTRATION#
The Karnataka State Chartered Accountants Association (R) (in short ‘KSCAA’) is an Association of Chartered Accountants, registered under the Karnataka Societies Registration Act, in the year 1957. SUB: ERRONEOUS INTIMATIONS ISSUED U/S 143(1)(a) of INCOME TAX ACT, 1961.
KARNATAKA STATE CHARTERED ACCOUNTANTS ASSOCIATION (R)
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