Circular No. 4 of 2012, dated 20-6-2012
The Board has been apprised that in certain cases the assessees have
disputed the figures of arrear demands shown as outstanding against them
in the records of the Assessing Officer. The Assessing Officers have
expressed their inability to correct/reconcile such disputed arrear
demand on the ground that the period of limitation of four years as
provided under sub-section (7) of section 154 of the Act has expired.
Further, in some cases, the Assessing Officers have uploaded such
disputed arrear demand on the Financial Accounting System (FAS) portal
of Centralized Processing Center (CPC), Bengaluru which has resulted in
adjustment of refund arising out of processing of Returns against such
arrear demand which has been
disputed by such assessees on the grounds
that either such demand has already been paid or has been reduced/
eliminated in the appeals, etc. The arrear demands, in these cases also
were not corrected / reconciled for the reason that the period of
limitation of four years has elapsed.
2. The Board, in consideration of genuine hardship faced by the
abovementioned class of cases, in exercise of powers vested under
section 119(2)(b) of the Act, hereby authorize the Assessing Officers to
make appropriate corrections in the figures of such disputed arrear
demands after due verification/reconciliation and after examining the
same on merits, whether by way of rectification or otherwise,
irrespective of the fact that the period of limitation of four years as
provided under section 154(7) of the Act has elapsed.
3. In view of the above the following has been decided:—
(a) In the category of cases where based on the figure of arrear
demand uploaded by the Assessing Officer but disputed by the assessee,
the Centralized Processing Center (CPC), Bengaluru has already adjusted
any refund arising out of processing of return, the jurisdictional
Assessing Officer shall verify the claim of the assessee on merits.
After due verification of any such claim on merits, the Assessing
Officer shall issue refund of the excess amount, if any, so adjusted by
CPC due to inaccurate figures of arrear demand uploaded by the Assessing
Officer. The Assessing Officer, in appropriate cases, will also upload
amended figure of arrear demand on the Financial Accounting System (FAS)
portal of Centralized Processing Center (CPC), Bengaluru wherever there
is balance outstanding arrear demand still remaining after aforesaid
correction/ reconciliation.
(b) In other cases, where the assessee disputes and requests for
correction of the figures of arrear demand, whether uploaded on CPC or
not uploaded and still lying in the records of the Assessing Officer,
the jurisdictional Assessing Officer shall verify the claim of the
assessee on merits and after due verification of such claim, will make
suitable correction in the figure of arrear demand in his records and
upload the correct figure of arrear demand on CPC portal.
4. It is specifically clarified that these instructions would apply
only to the cases where the figures of arrear demand is to be
reconciled/ corrected – whether such arrear demand has been uploaded by
the Assessing Officer on to Financial Accounting System (FAS) of CPC or
it is still in the records of the Assessing Officer.
This may be brought to the notice of all the officers of your CCA region.