CBDT asks I-T to refund excess tax in old cases

New Delhi: In a relief to taxpayers, the CBDT has asked assessing officers to refund excess tax even in those cases hit by limitation clause of four years. In a circular issued on Wednesday, the Central Board of Direct Taxes (CBDT) has also asked assessing officers to remove discrepancies in tax demands in the data being maintained by Central Processing Centre (CPC), Bengaluru.

"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 CBDT said. In certain cases, CBDT noted that assessees have disputed the figures of arrear demands show as outstanding against them in records of assessing officer. The officers have expressed their inability to correct or reconcile such disputed arrear demand due to limitation of four years.

Also, in some cases, it said the assessing officer have uploaded such disputed arrear demand on the Financial Accounting System (FAS) portal of CPC. This resulted in adjustment of refund arising out of processing of returns against arrear demand which has been disputed by assessees on the grounds that either such demand has already been paid or has been reduced in appeals, etc.

Under the existing provisions of the Income Tax Act, the assessing officer cannot look into refund cases which are more than four year old. In 2011-12, the Income Tax Department had issued refunds of about Rs 95,000 crore.