Defect u/s 139(9) as per rule 37ba read with section 199

This query is : Resolved

DINU SUKUMAR (Querist)
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09 May 2018 Our client is a professional and offered gross receipts from profession Rs.55 Lakhs in the profit and loss account as well as in the ITR accurately. Gross receipts as per 26AS is only 30 Lakhs, which is liable for TDS to the deductors.

However, the return is defective u/s 139(9), the error descripttion is "as per rule 37BA of the income tax rules, 1962, read with section 199, credit of TDS shall be given for the assessment year for which such income is assessable. As seen from the ITR filed, credit of TDS has been claimed but the corresponding receipt/income has been ommitted to be offered for taxation. The above ommission is a defect, as per clause (a) of the explanation provided under sec.139(9)".

Probable resolution mentioned in the 139(9) received is " The gross receipts/income, on which tax has been deducted, are to be entered in the schedule under the respective heads of income, as they are assessable in the year in which the credit for the TDS is being claimed".

Our client is liable for audit and in the ITR filed we had disclosed gross receipts from profession is more than the gross receipts as per 26AS. Please give us a solution.

Thanks

Sunil

Sunil (Expert)
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10 May 2018 In the Nature of Business and Profession did you choose the correct selection from the drop down menu eg. lawyer, doctor etc. That should match with the cert u/s 194J.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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10 May 2018 It seems that notices are being issued mechanically without applying any human mind. The computerised process of CPC is, sometimes, adopting such parameters for "Gross Receipts" which are beyond the understanding of a common man. However, I am 99.99% sure that if this is the only reason, you need not to worry. CPC has many times taken proper human action and issued Intimation U/s 143(1a) by ignoring such notices.

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