Taxpayer thrashed for minor mistake, no word on CPC Blunder: CA Association takes dig at 80P Error in ITR Processing

The Chartered Accountants Association, Surat has made representation before Finance Minister regarding Faux Pas of Income Tax Portal.

With due respect, it is brought to your kind knowledge that yesterday thousands of assessee across the country, who are assessed as partnership firms (FAS) received notices regarding proposed adjustment u/s 143(1)(a) stating that assessee had claimed incorrect claim. Sample of incorrect claim as stated in the said notices are as under:

Such type of notices generated fear in the minds of the assessee and contacting their tax professional to know the facts. Since most of notices were received in the late evening so it was very cumbersome exercise to solace the assessee from the side of the tax professionals.

Deduction of section 80P is not allowed to the assessee being partnership firm, so it is fairly assumed that income tax utility itself will not accept the said return even though some partnership wish to claim deduction u/s 80P of the Act as the said deduction is available only to Cooperative Societies.

For a slightest mistake on the part of an assessee, he is thrashed financially and legally citing negligence in performance of his duties. But for an absolute blunder affecting the mass public and putting them on the edge of anxiety, the mute mode of the Finance Ministry is perplexing.

This is not the one and alone instance but such types of instances were also happened in the earlier years also. Such type of irresponsible processing is not only wasting Lacs of precious invaluable man-hours of tax professionals and assessees, but also blocking the development of the nation to that extent.

Looking to the above, we demand that CPC be instructed to recall such notices immediately. Your office is also should take necessary action on the software provider or other persons in this matter so that such type of hurried and irresponsible instances is not getting repeated in future.

For Official Representation Download PDF Given Below: