Demand notice u/s 143(1)

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A taxpayer received a demand notice under section 143(1) of the Income Tax Act concerning their share of profit from a partnership firm. Although the firm paid tax on its profits, the taxpayer mistakenly left the partnership information schedule blank in their own return. This led to the tax department levying tax on the profit share, which should have been exempt under section 10(2A). The advice given is to file a rectification return, not a revised return, to correct the omission by filling in the required schedule.

ANJAN BHATTACHARYA

ANJAN BHATTACHARYA (Querist)
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06 March 2020

My income include salary and share of profit from partnership firm. Firm is paying income tax on its profit filed I.T Return for A.Y 2019-20 showing my share of Profit from partnership firm. Though I have my share of profit ITR-3 and not included for calculation of Income Tax. However, I left blank by mistake schedule IF(Information regarding partnership firms in which assessee is a partner.). Now demand notice received from Income Tax , levying tax on my Share of profit in partnership firm which is exempted u/s 10(2A).
Whether I have to submit revised return ?

Eswar Reddy S

Eswar Reddy S (Expert)
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06 March 2020 Analyse the 143(2) and submit revised return ASAP

Eswar Reddy S

Eswar Reddy S (Expert)
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06 March 2020 Analyse the 143(1) and submit revised return ASAP

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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06 March 2020 First you see the Intimation issued U/s 143(1)(a). You have to file a rectification return by quoting the CPC Order No , Date, Your Acknowledgement No of original return etc. Fill up the required Schedule . Generate XML and upload by complying the instructions.

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