Regarding correction of 143(1) intimation.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 July 2010 1.We have filed ITR4 online for one our clients for the asst year 2009-10 within the prescribed time limit.
2. We have received intimation u/s 143(1) from cpc bangalore with a demand. The income as per 143(1) intimation is 250000/- and as per our return filed, the income is Rs.1,10,000/-
3.To find out the reason for addition, I have gone through the P&L a/c. I observed that the figures for interest paid and depreciation are jumbled in the P& L a/c of the return filed by us. The figures for dep and interest are entered as 140100 and Rs.100 respectively instead of the actual figures Rs.100 and Rs.140100.
The dep added back in Business income computation in our return is Rs.100 only.

4. So the dept /software has added the dep as per p&l in the computation and raised the demand.

5. We have correctly entered the dep in Balance sheet as Rs.100 only (ofcourse it doesn't matter in computation). The assets value is only Rs.1000/-

How to respond to the Dept? Is it advisable to give a petition U/s 154 giving all the particulars or better to file a revised return? Please advise me.