I-T Portal Glitches: Taxpayers Receiving Notices under Section 143(1)(a), but Unable To Respond
Moneylife Digital Team 07 October 2021
The issues with the  new income-tax (I-T) website, handled by Infosys Ltd, do not seem to end the harassment and agony being faced by taxpayers and chartered accountants (CAs). The latest in the 'technical glitch' of the I-T website is sending notices to taxpayers under Section 143(1); these glitches are causing hindrances while responding to those intimations.
Karnataka State Chartered Accountants Association (KSCAA) sent a letter to JB Mohapatra, chairman of the Central Board of Direct Taxes (CBDT), highlighting hardships being faced by taxpayers and CAs regarding adjustments being proposed under Section 143(1)(a) of the I-T Act.
It says, "Section 143(1) intends to provide a line of communication between the assessing officer and the assessee to provide clarification and agree on the accurate computation of total income. However, such erroneous intimations would defy the purpose of the Section by proposing invalid adjustments. The issue is further amplified on account of assessees not being able to disagree with the adjustments made due to technical problems in the new website."
Section 143(1)(a) of the Act provides that where a return has been made under Section 139, or in response to a notice under sub-section (1) of Section 142, such return should be processed after making specific adjustments as mentioned under clauses (i) to (v) of 143(1)(a) to the compute of the total income or loss. The adjustment needs to be made only after giving intimation and providing an opportunity to the assessee to respond within thirty days of issue of such intimation.
Several other CAs also point out the difficulties in an increased number of intimations sent under Section 143(1)(a) and issues while filing the response.
According to the Association, two main issues are related to the intimation under Section 143 (1)(a) and its response.
It says, "Amounts not credited to profit and loss account are reported under clause 16 of form 3CD, and the same is reflected under clause 5 of Part A – OI (other information) of ITR-6. In such cases, though, the assessee has correctly offered those amounts under other heads of income. However, the intimation issued under Section 143(1) of the Act proposes to add such amounts to total income, which would result in doubly offering the same income and also in reducing the total loss to be carried forward, in the case where there is loss."
"Statutory dues paid and allowable upon payment under Section 43B of the Act are reported under clause 26 of form 3CD, and the same is reflected under clause 10 of Part A – OI (other information) of ITR-6. In such cases, though the amounts have been reported as 'paid on or before the due date for furnishing the return of income of the previous year under Section 139(1)', the intimation issued under Section 143(1) of the Act proposes to disallow the expenses by erroneously considering that the dues have not been paid before the due date for furnishing the return of income. This would again result in invalid addition to income offered and also in reducing the total loss to be carried forward, in the case where there is loss," the Association says.
According to KSCAA, while such adjustments are being intimated to the assesses through the intimations under Section 143(1), "the glitches in the I-T portal are causing hindrances in responding to those intimations, which would ultimately result in automatic adjustment of the invalid demands proposed against future refund amounts."
Appreciating the Union government's efforts in unveiling the much-acclaimed and much anticipated enhanced technical capabilities in the new e-filing portal to process returns and to generate refunds within one day of filing, at the same time, the CA Association says, "on the other side the unguided and un-canalised return processing practice and the mechanism as followed at present under Section 143(1) of the Act without taking cognisance of responses to intimations would regrettably be leading towards violation cardinal principle of natural justice, equity and good conscience, by the tax administration, which may be avoided with necessary measures being taken."
KSCAA has requested the CBDT chairman proper and correct validation of income tax returns (ITRs) to compute total income or loss following provisions contained in sub-clause (i) to (v) of Section 143(1)(a) before issuing intimations under proviso to Section 143(1)(a) the Act.
"The patent defects in the new IT e-filing portal be rectified to enable and facilitate taxpayers to submit their responses to proposed adjustments covered in intimations being received under Section 143(1)(a). Until the request is completely resolved, no adverse notices prejudicial to the interest of taxpayers be issued on account of non-receipt of response within the statutory time limit of 30 days," KSCAA says.
1 week ago
We are hearing of glitches in the highly touted IT Portal for almost 6 months now - causing tremendous inconvenience and cost to honest tax payers who want to file their returns and be exemplary citizens.
What we have not heard a word about is the "penalty" if any awarded to the contractor for this mess that is created and he is unable to set right for months on end. What were the commercial contracts? Were there penalties for late delivery and/or performance guarantee called for?
1 week ago
We have a Trust Account. We are not able to login into our account for the last three months in e-filing portal as the D.SC is asking a token of PAN whose name is removed from the profile. We re not able to either delink the PAN nor register new DSC of Key person. Several complaints through Grievance portal re of no avail.
1 week ago
Income Tax (Department) in India is State sponsored organised extraction racket of the Government whose only purpose is to harass 1% honest individuals and squueze their earnings and savings and let the corrupt get away. The Portal and the working of the Portal is a reflection of the incompetence of the Income Tax Department and the Revenue Ministry and the overall Government.
1 week ago
For having submitted my IT Return for a/y 21-22, IT dept has sent usual reply saying IT Return submitted and acknowledgment attached. There is no attachment. I have sent a mail to IT Dept no news even after 10 days, no acknowledgment of mail either.
1 week ago
This shows the mistrust the department and government is having on the income tax assessees. The department tries to plug all possible issues by putting more queries znd onus on the assessee to prove his statements which is the brief given to developers of the new platform. It is very difficult to seamlessly bring all their thoughts into action in one go.
1 week ago
Error notices are being received. I hv received notice adding my personal loan amount to my income.
1 week ago
Forget about filing your ITR. The platform announces 4 telephone nos. for queries on e-filing.
2 of these nos. are mobile nos. which respond that they are not in working order. The other 2 are help-lines. You are asked to key in your PAN followed by date of birth. The response you get is that the date of birth does not match the PAN - so you are left with no option but to switch off your call.
1 week ago
More Modiform Moditech. This time under the draconian expropriation of the IT Act. Modi reminds me, more and more, of Captain Ahab in "Moby Dick"
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