Mistakes in CPC Processing

Dear Colleagues,

 

    Time and again it is found that there are many mistakes creeping in intimations u/s 143(1) sent by CPC. When the matter is taken up to CPC, they simply advice that it is due to mistake in filling return and advice to check common errors list. When the same issue is taken up with AO, they agree about the mistake and say that they are helpless in the matter and advice to file rectification application. However many a times rectification applications are either rejected or re-processed in similar manner as processed earlier maintaining erroneous demands.

   One such peculiar case is about charging interest on tax arisen out of income offered u/s 44AD. Law does not require assessee offering income u/s 44AD to pay advance tax. However CPC is charging interest u/s 234B and C in such cases and raising demands. Even if rectification application is filled for such intimations, they are re-processed and same demand is again raised. This is causing undue hardship to assessee as well as to us as it is increasing unnecessary work load and also creating doubts in the mind of assessee.

   Even there are many other issues with CPC processing (like non credit of tax payment even if it is shown in Form 26AS, not taking into consideration extended due dates of filling return, etc). While talking with many ITO, they admit that there are many defects in processing software and even they are fed up of such processing mistakes.

   So our council should raise strong voice at appropriate level and address the issue asap. Although are attempts are made by council, it should be speed up and atleast stay must be made on recovery of such erroneous demands as they are adjusting genuine refunds against such erroneous demands.

You may please share your views and experiences in this regard.

Regards,

CA Dipesh Gundesha

Kolhapur