Re: adjustment of refund
The assessee order u/s 147 rw143(3) for Ay 2012-13 was passed in Dec 19 and demand of Rs 82 lacwith interest( 72 Lac with out Interest created Further refund for Ay 2017-18 has been determined in Jan 20 for 72 Lacs
Assessee has another disputed demand pending for Ay 2016-17 order passed in Dec 18
The assessee wants to go for scheme for Ay 2012-13 and get refund adjusted with this demand and applied the same online in CPC and a application was given to AO in first week of March No confirmation of adjustment
of refund
Is refund can be adjusted only with demand created first or with any demand
whether first demand should be adjusted only then we can apply or we can apply and ask again the AO to adjust with refund Please guide
There are no specific guidelines for sequence of adjustment of refunds. However as a matter of practice the department follows FIFO basis and hence generally refunds are adjusted against demanded created first.
It would be advisable to get the refunds adjusted first and then apply for VsV.
In Form 1 there is specific column in Part E asking for the details of refund reduced or adjusted. This column was not there earlier. I believe if refund is already adjusted then same can be filled here