Notice received under sec 139(9). error code:31.

This query is : Resolved

Atul Arora (Querist)
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16 July 2015 Below is summary of communication received.
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Notice under sec 139(9) for AY 2014-15.
Ref: Scetion 143 1B, read with clause 2C(iv).

Error Code: 31
Error Description: Assesse has offered income under the head "Profits and Gains of Business or Profession" but has not furnished any details in teh Ba;ance Sheet and/or Profit and Loss Account.
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I checked the ITR form and see that the P & L is already filled in. So, I assume that the notice is due to blank 'Balance Sheet' section.

Now, there is nothing to fill in 'Sources of Fund' or 'Application of Funds' since the income is really consulting income and do not possess any assets. Its is also not a 'No Accounts Case'.

But I need to respond to the notice. Should I fill in 4c under 'Application of Funds...'Profit and Loss account/Accumalted Balance'. Here I can fill in the same figure as in 'P & L' section, item 48 (Profit after tax).

Please help.

Vivekanand Kushwaha

Vivekanand Kushwaha (Expert)
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16 July 2015 Just file revised return with balance sheet figure. Source of fund is your net profit and application of fund bank balance /cash if you are saying no other transaction

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Atul Arora

Atul Arora (Querist)
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16 July 2015 Can you give me examples of what kinds of funds should be filled in 'Application of funds' and specifically 4c 'Profit and Loss account/Accumulated Balance.

The name 'application' of funds sounds more like expenses to me.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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16 July 2015 @ Vivekanand

Not a 'revised return' but to select'in response to section 139(9)' option while uploading the ITR.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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16 July 2015 @ Atul

Profit after tax (48) may be filled in b(iv) of Part A-BS and not in 4c.

Atul Arora

Atul Arora (Querist)
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16 July 2015 Dear Experts,

Unfortunately, I do not understand which item to fill in the 'Balance Sheet' section still since the only source of income is professional consulting income. I do not have any assets at all.

Atul Arora

Atul Arora (Querist)
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16 July 2015 Dear Experts,

The only source of income is consulting fee received from employer.

Please suggest the right fields to fill in the Balance Sheet.

Atul Arora

Atul Arora (Querist)
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22 July 2015 In P&L, the gross receipts is 8 lacs and expenses is 1 lac. So the P&L balance is 7 lacs.

My bank balance is 4 lacs and Cash in hand is 0.5 lacs.

Household expenses is 2.5 lacs. If I do not account this, the credit and debit will not match. This is my personal expenditure like school fee of children, ration etc. I do not have separate bank account for consulting income purpose.

Please tell if the below is correct or else, please correct.

Proprietor's capitol - 7 lacs(I have taken from P & L balance)
Bank Balance - 4 lacs
Cash-in-hand - 0.5 lacs
Miscellaneous expenditure not written off or adjusted - 2.5 lacs (using this field for Household expenses).
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Also, please tell me what is the field "Profit and Loss account/Accumulated Balance" field meant for.

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