Taxation
Bombay Chartered Accountants’ Society to take up I-T rectification matter with tax authorities

One of the major problems of taxpayers is that they have to communicate with the Centralised Processing Centre based in Bengaluru only through letters sent by ordinary post

A large number of taxpayers across the country face various difficulties in rectifying the intimation issued by the Centralised Processing Centre (CPC) under section 143 (1)(a) of the Income-Tax Act, 1961. In order to find a solution to this and to take up the matter with the appropriate authorities, the Bombay Chartered Accountants' Society (BCAS) has asked its members to send a brief summary of the difficulties faced.

The intimation issued under section 143(1) of the I-T Act authorises the assessing officer (AO) to issue refunds and raise a demand of tax along with interest due strictly on the basis of the returns furnished by the assessee. Any mistake in computing the tax by the taxpayer falls within the scope of the Act. However, it does not cover issues like whether the income covered is chargeable to tax or not, the applicable rate of tax, the income shown as royalty, or business profit, or under any other head within the meaning of the double taxation avoidance agreement between India and other countries.

The problem is compounded in case the intimation is issued by the CPC, as there is no other way to communicate with the AO, except through letters, to a post bag number in Bengaluru. And the taxpayer has no way of knowing whether his letter has reached the appropriate authorities.

The BCAS said in a statement, "It seems that the problem becomes more acute due to lack of clarity about the methodology of getting such mistakes rectified, and on account of the fact that the applications for rectification made by the assessees remain pending without proper action."

According to the chartered accountants' society, among the major mistakes observed in the intimation are not giving credit for tax deduction at source (TDS), adjustment of wrong demand for earlier years based on erroneous records against the legitimate refund due to the assessee in subsequent years, and wrong adjustment while computing gross total income.

BCAS said its taxation committee is actively considering taking up this matter with the appropriate authorities, and in this respect it has requested all members to submit a summary of difficulties, without disclosing the identity of the assessees.

Members of the BCA can also send information about the actual number of pending applications, without citing particulars of individual cases, and the amount involved, in a format available on the society's website before 31 May 2011.

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COMMENTS

N C DAFTARI ADVOCATE

5 years ago

Wrong adjustment while computing total income by the Dept.:-
As per section 71 read with section 71B, house property loss can be adjusted against income under any other head.But while entering the Data online in ITR-4,in many cases, the loss under house property is not adjusting against income of any other head except the income from salary resulting which demand is coming and my assesses are compelled to file the online Rectification applications without knowing the status of the application filed for indefinite period.

Tata’s ‘remarks’ on Mukesh Ambani home sparks controversy

Tatas disputed the reported attribution to its chairman, saying that the comments were taken out of context and factually incorrect. A Tata Sons spokesperson said that the comments seem to have been deliberately sensationalised and added it was pursuing measures against the incorrect impressions being sought to be created

London/Mumbai: Ratan Tata’s purported remarks expressing surprise at fellow industrialist Mukesh Ambani living in a billion-dollar mansion in Mumbai sparked off a controversy on Sunday, reports PTI.

The Tata group chairman was quoted by London’s Times newspaper as having said, “It makes me wonder why someone would do that. That's what revolutions are made of. The person who lives in there should be concerned about what he sees around him and [asking] can he make a difference.

“If he is not, then it’s sad because this country needs people to allocate some of their enormous wealth to finding ways of mitigating the hardship that people have.”

Mr Tata, who bought the British steel maker Corus and car manufacturer Jaguar Land Rover (JLR) said the widening gap between the rich and the poor in India worried him.

“We are doing so little about the disparity. We are allowing it to be there and wishing it away.”

However, Tatas disputed the reported attribution to its chairman, saying that the comments were taken out of context and factually incorrect.

“We would also like to clarify on stories in Indian media regarding Mr Ambani’s home. The report is out of context and factually incorrect. Mr Tata’s comments on wealth are in the larger context of the growing disparity in the society.

The comments seem to have been deliberately sensationalised.

“There have been words, individuals and statements that have not been mentioned by Mr Tata during the course of the interaction which are being attributed to him.

“We have already registered our protest with the concerned publication and will continue to pursue measures against the incorrect impressions being sought to be created,” a spokesperson of Tata Sons said in a statement.

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Renault launches its luxury model in India

Petrol variant of Fluence will come with a 2 litre engine while the diesel option will be powered by a 1.5 litre engine

French carmaker Renault has launched its luxury sedan ‘Fluence’ in India with both petrol and diesel options, priced between Rs12.99 lakh and Rs14.40 lakh (ex showroom Delhi).

“The Renault Fluence was designed for the Asian market and hence we are confident that it will not only shake up the segment, but also give the Indian customer their first taste of what Renault is capable of bringing to the Indian market,” Renault India managing director Marc Nassif said.

This is the first Renault branded car to be assembled in India at its Chennai facility, he added.

Petrol variant of Fluence will come with a 2 litre engine while the diesel option will be powered by a 1.5 litre engine.

Renault along with its global alliance Nissan has committed an investment of Rs4,500 crore by 2015 at Chennai facility, which will have a total production capacity of 4 lakh units per annum.

The French company is currently considering setting up an engine plant at the facility.

After Fluence, Renault will introduce a sports utility vehicle ‘Koleos’ this year, followed by three more car in 2012.

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