TMI BlogStandard Operating Procedure for Verification and Correction of Demand available or uploaded by AOs in CPC Demand Portal - regarding.X X X X Extracts X X X X X X X X Extracts X X X X ..... following two categories of demand: 3.1. Category 1 demand: These include the following demands i) Demands generated in CPC ii) Demand created in AST and posted in IRLA on or after 1-04-2010. Demand at 3.1 i) above can be rectified by the AO through AST where rectification rights have been transferred by CPC to AO. As regards demand at 3.1 ii) above, AOs were not required to upload these demands in CPC FAS as the demands and their collection/reduction automatically flows from CPC to AST and vice-versa. These demands can be increased/reduced by passing suitable orders in the AST or by way of owning up of challan. 3.2 Category 2 demand: These include the following demands i) Demands created in AST and posted in IRLA prior to 1-04-2010. ii) Manual demands which have PAN i.e. demand created by way of passing manual orders as per ADCR or DCR. AOs were required to upload these demands on the CPC Arrear demand Portal after due process of verification and after reducing the taxes paid by Assessee. These demands can be reduced or deleted by AOs only after approval of Range head as per earlier instructions. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ordance with the attributes of CAP I Report (enclosed as Annexure A). If the demand is disputed, the AO should also note the level at which the demand is disputed (CIT (A), ITAT, High Court, Supreme Court etc.). 4.8 The AO should capture details given in Annexure B with respect to demand verification and confirmation exercise which should be entered in the CPC Demand Verification Portal . 5. Handling Different Scenarios during Verification and Confirmation of Demand: The Assessing Officer should handle different scenarios during verification and confirmation of demand in following manner: If the taxpayer's reply or Departmental records show that demand or tax has already been paid, the AO should reduce the demand as under: a. Category 1 demand : AO should follow the steps as under: i. In case regular tax (minor head 400) has been paid, the challan will have to be owned up in OLTAS (Refer Annexure C for details) ii. In case the demand is on account of mismatch of advance tax or self assessment tax, rectification order u/s 154 is required to be passed in AST. The revised demand will automatically get u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re available in the 26AS. If the credits are available in 26AS, a suitable rectification order on a suo moto basis as per AST Instruction No. 118 should be passed. Alternatively, based on the taxpayers reply, order u/s 154 in AST should be passed for Tax credit available in 26AS. In case, credits in 26AS are not, the procedure as per Category 2 demand may be followed but the order under section 154 should be passed in AST. b. Category 2 demand: i. If the credits are available in 26AS: The AO should pass rectification order u/s 154 manually. Demand reduction can be made in CPC Demand Verification Portal . ii. If the credits are not available in 26AS: The reduction can be done only in the cases of Individuals and HUFs. Further, the amount of reduction should not exceed Rs. 1,00,000 and AO should take following steps: a. AO should pass order u/s 154 manually after obtaining the TDS certificate from the assessee on the basis of which claim has been made. b. In case, the outstanding demand is more than Rs.25,000, irrespective of the quantum of demand being reduced, the AO should obtain an indemnity bond (in the format given in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the year 2014-15, all Chief Commissioners and Commissioners should monitor the action taken by assessing officers as per this instruction and report the progress in their Monthly DOs. 8 . Hindi version to follow. F. No. 225/151/2014-ITA.II (Rohit Garg) Deputy Secretary to the Government of India Annexure A Demand Categorisation: 1. Pending write off 2. Assessees not traceable 3. No assets/inadequate assets for recovery 4. Protective Demand 5. Department has lost in appeal in earlier years 6. Notified persons under Securities Act, 1992. 7. Cases admitted before BIFR 8. Companies in Liquidation 9. Cases before Settlement Commission 10. Demand stayed by Courts/ITAT 11. Demand stayed by I.T. Authorities 12. Demand covered by instalments 13. Stay petition pending consideration by I.T. Authorities 14. TDS/Prepaid taxes mismatch 15. Bank Guarantees obtained under MAP process 16. Rectification pending on account of duplication of entries 17. Assets jointly attached with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Format for Indemnity Bond (to be typed on non judicial Stamp Paper of Rs. 100): INDEMNITY BOND This Bond of indemnity is made this _________ (Date of Indemnity Bond) in favour of Government of India (Department of Finance) i.e. Income Tax Department by Mr./Mrs./Ms. _____________________ (Name of the Indemnifier) Son of/Daughter of/Wife of __________________________ on behalf of self or M/s _______________________ PAN _________ Status__________ WHEREAS This is to undertake: 1. That I had filed my Income Tax Return for the Assessment Year ________ 2. That TDS claimed in the return of Rs. __________ belongs to me as per TDS certificates mentioned below Name of Deductor, TAN of deductor, Date of TDS certificate, Amount a. ______________________ b. ______________________ OR That Challan(s) paid for Rs. ______________ belongs to me as given below: Date of Payment, Bank through which payment made, Amount a. ______________________ b. ______________________ 3. That in case it is found that the TDS certificates/Chall ..... X X X X Extracts X X X X X X X X Extracts X X X X
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