Applicability of old CBDT instruction

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  1. AKD

    AKD Member

    1. In IT return of AY 2011-12 I staked a claim for TDS amounting to Rs. 6439/- as the postal dept (deductor) had deducted this amount from interest of my Senior Citizen Savings Scheme (SCSS) accounts
    and these deductions were entered in the pass books.
    2. However, this TDS was not reflected in my 26AS form of AY 2011-12 as the said deductor either did not file TDS return or deposited the deducted amounts to the central govt account with wrong PAN. Neither, any form 16A was issued.
    3. Thereafter, Income Tax department issued an intimation u/s 143(1) of the Income Tax Act, 1961 to me raising a demand of Rs. 7790/- comprising the above amount of Rs.6439/- plus interest.
    At this point, I would like to mention of an Instruction No. 4/2012 dated 25.05.2012 of CBDT wherein it was decided as quoted below:
    " In all returns(ITR-1 to ITR-6), where the difference between the TDS claim and matching TDS amount reported in AS-26 data does not exceed Rs. Five thousands, the TDS claim may be accepted without verification."
    Since, the difference exceeded this limit in my case, the demand was raised.
    4. On receipt of the above intimation, I met with the concerned ITO and submitted a prayer to drop the demand on the ground that tax was indeed deducted at source by the post office as evident from the pass books, copies of which were also filed.
    5. That the matter is still pending became clear when I received an e-mail intimation u/s 245 of IT Act, 1961 from CPC , Bangalore seeking to adjust my claim of refund of Rs.3810/- raised in ITR-1 of AY 2014-15 against this demand of Rs.7790/-.
    6. However, now I find that a part of that TDS amounting to Rs. 2296/- is reflected in 26AS of AY 2011-12. It is clear that the deductor deposited this amount subsequently.
    As a result, difference between TDS claim and 26AS data reduces to Rs. 4143/-, below ceiling limit of Rs. 5000/- mentioned in CBDT Instruction No. 4/2012 dated 25-05-2012.
    I would like to know from experts in this matter, whether this old instruction will be considered relevant by the Income Tax dept for my case, which also pertains to the same period, if I once again submit a prayer?
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