Defective reutrn

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

06 March 2018 Our ESOP trust filed ITR-5 for AY 1617.
Now we have received notice u/s 139(9) for defective return which says following

Error Code-331

Error Description-Tax Payer has shown gross receipt or income under the
head “Profits and gains of Business or Profession” more
than Rs. 1 crore; however, Part A of the Profit and Loss
Account and/or Balance Sheet have not been filled and/or
the books of accounts have not been audited.

Probable resolution

Please fill the Part A of Schedule Profit & Loss A/c &
Balance Sheet details and also provide details of audit report
obtained u/s 44AB in Part A – General.

We have shown following income in Part A-P& L
Dividend income-1,42,00,605
Interest income-14,66,578
Profit on sale of investment being securities chargeable to Securities
Transaction Tax (STT)-16,04,55,412

Now how to cure defect ?In fact there is no defect.
Please advice

Expert : Anonymous

Expert : Anonymous (Expert)

06 March 2018 You have to file return will profit and loss as well as balance sheet too and the return has to be audited and signed by auditor and submit your return within 15 days of notice received under defect as per section 139-9. You can ask for further time from you ITO.

Querist : Anonymous

Querist : Anonymous (Querist)

07 March 2018 Dear Sir
Thanks for reply
But I have still following questions
Assessed us trust and not doing businesses then there is no question of getting tax audit.
Also assessed has filed return and full details of balance sheet and profit loss account.
Also dividend interest and profit on sale of shares are from investment
Can I meet AO and seek guidance from him about to how resolve this problem

Expert : Anonymous

Expert : Anonymous (Expert)

07 March 2018 As per section 12A it is mandatory to get the accounts audited as in your case. As per section 139(4A) it is mandatory to file the return of the income if the gross income exceeds maximum amount which is not chargable to tax without giving effect of Sec-11 & Sec-12. In the above case as the total receipts exceeds basic exemption limit you have to get the accounts audited and filed with ITR.

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