Response to defective return u/s 139(9)

This query is : Resolved

LKA (Querist)
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08 June 2019 IT IS AN AUDIT CASE. TDS DEDUCTED UNDER SECTION 194C BUT CORRESPONDING INCOME WAS NOT SHOWN IN THE PROFIT AND LOSS ACCOUNT. HOW TO RECTIFY THE RETURN. DO I NEED TO RECTIFY THE REPORT ALSO???

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 June 2019 Revise return in response to the notice and revised tax audit report has to be filed.

LKA

LKA (Querist)
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10 June 2019 CLIENT DOES NOT WANT TO RECTIFY THE AUDIT REPORT.... IS THERE ANY OTHER WAY??

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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21 July 2025 If the client does not want to revise the tax audit report but the income on which TDS under Section 194C was deducted is not shown in the P&L, it will cause a mismatch leading to a defective return under Section 139(9).

Key points:

Income should be reported in the P&L and tax audit report consistently.

Since the TDS was deducted on that income, it must be reflected in the return and the audit report.

If audit report is not revised, the return will likely remain defective and may attract penalties or notices.

Alternatives (not recommended or risky):

You could try to explain to the department that the income was inadvertently omitted but this is not a proper compliance and may invite scrutiny.

The best practice is to revise the return and the tax audit report to maintain consistency and comply with the law.

Summary:
No proper legal way exists to avoid revising the tax audit report if income on which TDS was deducted is not shown. The client should be advised to file revised return and audit report to avoid penalties and complications.

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