Notice u/s 139(9)

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Pooja (Querist)

02 August 2013 Sir,
I have F&O loss in business and I do not maintain books of A/c's and am not liable for Audit u/s 44AA or u/s 44AB. In ITR 4 (A.Y. 12-13), thus I have recorded gross receipts as 0, loss amount as negative figure in gross receipts and hence net profit is a negative amount(In no accounts case section).

I received notice u/s 139(9), quoting error codes 14(negative amount in G.P and N.P),23,26(claiming expenditure w/o giving details of Gross receipts and G.P) and 32.

My Query is,
Whether I'm covered u/s 44AD. If yes then how am I supposed to show gross receipts and how am I supposed to show 8% revenue in case of loss?

Please help.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

03 August 2013 F&O business is covered under Sec.44AD. under sec.44AD, incase declaring the loss or income less than 8% income, the audit of books is compulsory. not only you, this last assessment year number of assessess got this notice u/s.139(9) due to the negative amount shows without audit report in ITR. so get audit report and file the correction

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Pooja

Pooja (Querist)

05 August 2013 Thank you sir for replying. Do I need to get a Tax audit report u/s 44AB?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

05 August 2013 Yes. need to get audit u/s.44AB and upload the return with audit report.

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Pooja

Pooja (Querist)

06 August 2013 Thank you for solving my query sir.

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