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Gyan Anand (Retd. Manager)     07 September 2013

Refund of tax becuse of amendment of it rules

My question is

I have filed an  belated Income tax return of AY 07-08  with no claims. Subsequent to my filing the return  certain rules were amended by Government/ department. My employers accordingly issued a revised form 16. Since the revision was due to government amendment I filed a revised return claiming a refund.. No intimation was received till 2 years . We started writing to all concerned including Chief Commissioner but still received no reply 

Then we filed a grievance through IT ombudsman. We did not receive any reply. On following up we were told that a letter was sent to my old address asking for my original ,return, revised return form 16 etc. We asked for a copy of letter but was refused as per my IT advisor. However they gave a ref no and  furnished all the document asked for. They kept us assuring that they will issue the refund shortly but did not respond till july. we then wrote aletter but no effect. 

Ultimately I filed an RTI  asking for details.  Within  a week receiving the RTI i received a letter  Rejecting the claim. The reson given is 

" Becuse Original file return was belated  our revised return is not permitted as per income tax rule hence my 

Claim was not tenable"

My question is the revised return was filed because of an government action not because any error or omission on my part.  In case the situation would have reversed  ie. if i had to pay tax then would the department made avdemand. If so how they are refusing my claim as it is resulting from their action. 

I would seek your expert opinion if my claim is legally tenanle. I would request for your help urgently as i have to file an appeal

Thanks 



Learning

 2 Replies

Ms.Nirmala P.Rao (CEO)     12 September 2013

Dear Client,

 

                  If the revision of Government rules are retrospective in nature and if you've any written evidence from IT Department that they'd issue refund to you as per the revised rules of the Government , the IT Dept is estopped from pleading now of your late filing of the original return etc, you'll've a good case for appeal and succeeding in it as well.

 

Ms.Nirmala P.Rao

Legal Expert

Hyderabad

Ms.Nirmala P.Rao (CEO)     12 September 2013

Dear Client,

 

               The IT Department by their conduct of keeping silent in all the IT proceedings and giving assurances to you etc is bound to give you refund of money in view of revised rules and also the doctrine of equitable estoppel.

 

Ms.Nirmala P.Rao


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