defective notice u/s 139(9) error code 14

I need your help regarding ITR filing

My friend has received a defective return notice u/s 139(9). Her mother has a confectionery shop. She does not maintain regular books of accounts. She declares her profit u/s 44AD i.e 8% of gross receipts for all AYs

but for AY 2016-17, she has inadvertently filled in columns 53a to 53d of profit and loss account (in No Account Case section) i.e gross receipts, gross profit, expenses, net profit. She has claimed more expenses resulting into net loss.

She has also filled in the BP schedule profit u/s 44AD like earlier years i.e 8% of gross receipts.

Now, she has received notice stating error code 14 which is as under:

Tax Payer has entered negative amount in gross profit or net profit in Sl. No. 51b and 51d of Part B of Profit and Loss Account


Probable solution
Assessee has claimed loss under the head profit and gains of business or profession, however he has to fill Balance sheet and Profit and Loss account. Incase assessee's falls under section 44AD assessee also has to get his books of account audited if his income is less than 8% of the gross receipts.


She does not want to claim lower profit than the profit from presumptive basis.


Hence, the best option is that we enter all data in col 53a, b, c, d as nil. If we do that, then pl refer to notice u/s 139(9) which says as under:-

Kindly note:
1. Please ensure no other information is changed apart from those error listed below in Annexure - A, in case of any other changes in data, the return of income filed by you is liable to be treated as an invalid return.
2. For any change of income/ other heads, you may file a revised return as per the provisions of Income Tax Act,1961.


In view of the above, we have 3 options to choose from:-

a. In the return to be filed in response to 139(9), we simply enter all data in col 53a, b, c, d as nil. We do this, if we are sure that this will not render the return as invalid.

b. We file a revised return and then enter all data in col 53a, b, c, d as nil. 

c. We comply with the requirement of notice u/s 139(9) and Annexure A thereof and fill the details of balance sheet, etc. But does this mean that she is claiming income below than declared in 44AD.


She also has short term capital loss of around 14 lakhs which has to be carry forward.

So whatever route we choose carry forward of loss should not get affected.


Waiting for your reply