CIRCULAR NO
4/2012, Dated: June 20, 2012
Subject: - Rectification/ Reconciliation of arrear demand disputed by the Assessee- correction by the Assessing Officer- Regarding.
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 asses sees 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) ofthe 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 CPCdue 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 CPCportal.
5.
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 CPCor it is
still in the records of the Assessing Officer.
This may be brought to the notice of all the officers of your CCAregion.
F.No.225/48/2012-ITA-II
(Ajay Goyal)
Director (ITA.II)