Revised return

This query is : Resolved

ALOK (Querist)
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22 July 2010 (1) I am having a proprietorship firm!

(2) The firm had filed its audited report on 30th september 2009(On the due date)

(3) The individual return of the proprietor was also filed.

(4) However their was some mistake at the time of filing e-return and we have now recieved a Notice from centralised Processing Unit-Bangalore under Section 143(1) demanding some tax.

(5) What are the provisons to file my revised return, though I have already received a demand order to pay tax within one month.

CA. Anoop Gadia

CA. Anoop Gadia (Expert)
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22 July 2010 for proprietorship firm individual dost not fill the his return.

ALOK

ALOK (Querist)
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22 July 2010 The INDIVIDUAL is the PROPRIETOR of the firm.....
Hence after getting the accounts audited,, the Profit for the concerned year is transferred to Proprietor's Capital A/C.
I mean how come,the individual won't file his RETURN??

And my query is on filing of REVISED return??

mohinder kansal

mohinder kansal (Expert)
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22 July 2010 From the query it is not clear, what type of error has been there, if the error is apparent from the return, as i think it would be, inspite of filing of revised return application for rectification of mistake. as far as filing of revised return is concerned, it can be advised only after knowing the facts of the case, otherwise it may be a case of concealment of income

ALOK

ALOK (Querist)
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26 July 2010 The case is that:

While filing the return (E-return-which is sent to Bangalore),
Their has been Clerical Error while entering the figures,,
Say instead of Rs 3,50,000/_(Which was to be shown as Interest on Loans),,only Rs 50,000 has been entered while filing the return.

As an outcome of which,,the centralised processing centre has increased my INCOME by that amount (Say Rs 3,00,000---As its cited above) and accordingly it has sent a demand order asking to pay Tax & Interest on that Rs 3,00,000.

However it might be clear to you,,that it was just a typing error while filing....I mean instead of Rs 3,50,000,,the clerk has typed Rs 50,000 and accordingly filed the return.

Can I file a REVISED RETURN now?? Just to rectify that mistake of mine....
Though I have already received a Demand Order from Centralised Processing Centre at Bangalore??

mohinder kansal

mohinder kansal (Expert)
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26 July 2010 when interest income is typed 50000/- instead of 350000/-, how CPC came to know that interest was 350000/- what is the basis.

and if there is basis, and the assessee has shown interest as Rs. 50000/- instead of Rs. 350000/- and he has not paid tax on full income, then there should be no problem in depositing the demand.

ALOK

ALOK (Querist)
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27 July 2010 The case is not of showing or not showing INTEREST income.....

I think--I am not being able to make my point clear....

I have not received but paid interest on Unsecured Loans....

(Gross Profit-Depreciation-Interest-Other Expenses- ...etc etc)= Net Profit

And Income tax is paid on Net Profit....

So while in calculation of net Profit....

The amount which was deducted as Interest from Gross Profit ws wrongly entered...

Hope you are getting my point....

And please let me know if their is any procedure to file REVISED RETURN??

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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22 July 2025 Here’s a clear explanation based on your situation about filing a revised return after receiving a demand under Section 143(1):

🔍 Your Situation Recap:
Proprietorship firm filed audited report and proprietor filed individual return on due date.
Clerical error in e-filing: Interest expense of Rs. 3,50,000 was wrongly entered as Rs. 50,000.
CPC raised income by Rs. 3,00,000 and issued a demand notice under Section 143(1).
You want to correct this error by filing a revised return but have already received the demand order.
✅ Can You File a Revised Return Now?
Yes, you can file a revised return under Section 139(5) if the original return was filed on or before the due date.
Since the return was filed on time (before due date), the revised return can be filed within 1 year from the end of the assessment year.
Filing a revised return will help correct the mistake and show the correct figures.
✅ What About the Demand Notice?
Even after filing a revised return, the demand raised by CPC under Section 143(1) will stand unless rectified.
Once the revised return is processed, you can file an application for rectification under Section 154 requesting correction of the demand.
Submit supporting documents to prove the clerical error and revised figures.
✅ Steps to Follow:
File Revised Return (Section 139(5)): Correct the error in interest expense.
Wait for Processing: The Income Tax Department will process the revised return.
If Demand Not Corrected Automatically: File a rectification application under Section 154 citing the clerical mistake.
Pay Tax/Interest if Applicable: If any demand still remains, pay it to avoid penalties and prosecution.
✅ Important Notes:
Do not ignore the demand notice — respond timely.
Avoid any concealment of income — show correct data in revised return.
If you delay beyond the permitted time, you may lose the right to revise and have to rely only on rectification or other remedies.
Summary Table
Step Action Relevant Section
Original return filed on time Can file revised return Section 139(5)
Demand raised by CPC Respond & pay or file revision Section 143(1)
Rectification of demand order File rectification application Section 154

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