Section 44AA - Maintenance of Books of Accounts
This query is : Resolved
20 December 2010
> IT Return (ITR IV) of a proprietory business has been filed electronically u/s 139(4).
> Section 44AA was applicable to the business, but in the Return it was set at NO.
> Balance Sheet and P & L a/c were filled as per NO ACCOUNT CASE.
> There is a REFUND of TDS amounting to Rs. 17000 /-.
> ITR V has not yet been posted to Banglore.
Please suggest a remedy as soon as possible so that the client gets the refund without much hassel.
> Section 44AA was applicable to the business, but in the Return it was set at NO.
> Balance Sheet and P & L a/c were filled as per NO ACCOUNT CASE.
> There is a REFUND of TDS amounting to Rs. 17000 /-.
> ITR V has not yet been posted to Banglore.
Please suggest a remedy as soon as possible so that the client gets the refund without much hassel.
20 December 2010
You have not mentioned whether books are maintained or not. In this case you shuld revise the return and send ITR V to Bangalore if the assessee does not have digital signatures.
Message likes :
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20 December 2010
Sir, books have been maintained by the assessee, but originally the return was filed under section 139(4), i.e. a belated return has been filed. Can it be revised; if yes, how.
Please assist.
Please assist.
23 July 2025
Since the return was filed **u/s 139(4)** (belated return), it **cannot be revised** under **Section 139(5)**. Here's a breakdown of the situation and your options:
---
### 📌 **Facts:**
* **Return filed u/s 139(4)** → Belated return.
* **Section 44AA** applicable → Maintenance of books was mandatory.
* **Return filed as "No accounts case"** → Incorrectly filed.
* **Books were actually maintained**.
* **TDS refund** is expected.
* **ITR-V not yet posted** to CPC Bangalore.
---
### 🚫 **Problem:**
Under the **Income-tax Act**, a return filed **under section 139(4) cannot be revised**. This creates a challenge when there's a **material mistake** (like declaring "No Books Maintained" when books actually exist).
---
### ✅ **Your Possible Remedies:**
#### 1. **Don’t send the ITR-V – let it lapse**
* If ITR-V is **not posted within 30 days**, the return will **not be processed**.
* It will be treated as **not filed**, so there is **no legal return on record**.
* Then you can file an updated return **u/s 139(8A)**.
#### 2. **File an Updated Return (Section 139(8A))**
* This facility allows you to **correct the mistake**, even if belated or revised return isn't allowed.
* You can now file an **updated return** (ITR-U) for **AY 2010–11** within **24 months from the end of the relevant assessment year**.
* ⚠️ However, **AY 2010–11 is long past**, so this option is **not available** now.
#### 3. **File a Rectification Request (Section 154)**
* If CPC processes the return and you receive an **intimation u/s 143(1)** with a refund, but then an issue arises (like refund denied or under dispute), you can file a **Rectification Request u/s 154** to correct the error.
* But you can only **rectify clerical mistakes**, not change the return type or books maintenance status materially.
#### 4. **File a Grievance on e-Nivaran or Contact CPC**
* Explain the situation clearly via the **e-Nivaran portal** or call CPC.
* State that books were maintained but wrongly marked as "no books".
* If the refund is held or questioned, they may allow you to submit supporting documents manually.
---
### 📌 **What to Do Now:**
Since:
* The return is belated (u/s 139(4)),
* You cannot revise it, and
* ITR-V has **not been sent**,
Your best option is:
### ✅ **Do Not Send the ITR-V**
Wait for the 30-day window to lapse, then **re-file the return correctly** as a **manual filing with the Assessing Officer** along with a written explanation and evidence (especially if AY is old and refund is held up). You may have to file a **condonation request u/s 119(2)(b)** to get refund processed.
---
### ⚠️ Final Note:
For **current and future years**, avoid such errors and always:
* Ensure correct books-of-account status,
* Use digital signature or Aadhaar OTP to avoid ITR-V issues,
* Avoid belated returns unless absolutely necessary.
Let me know if you'd like help drafting a **condonation request** or **grievance letter to CPC**.
---
### 📌 **Facts:**
* **Return filed u/s 139(4)** → Belated return.
* **Section 44AA** applicable → Maintenance of books was mandatory.
* **Return filed as "No accounts case"** → Incorrectly filed.
* **Books were actually maintained**.
* **TDS refund** is expected.
* **ITR-V not yet posted** to CPC Bangalore.
---
### 🚫 **Problem:**
Under the **Income-tax Act**, a return filed **under section 139(4) cannot be revised**. This creates a challenge when there's a **material mistake** (like declaring "No Books Maintained" when books actually exist).
---
### ✅ **Your Possible Remedies:**
#### 1. **Don’t send the ITR-V – let it lapse**
* If ITR-V is **not posted within 30 days**, the return will **not be processed**.
* It will be treated as **not filed**, so there is **no legal return on record**.
* Then you can file an updated return **u/s 139(8A)**.
#### 2. **File an Updated Return (Section 139(8A))**
* This facility allows you to **correct the mistake**, even if belated or revised return isn't allowed.
* You can now file an **updated return** (ITR-U) for **AY 2010–11** within **24 months from the end of the relevant assessment year**.
* ⚠️ However, **AY 2010–11 is long past**, so this option is **not available** now.
#### 3. **File a Rectification Request (Section 154)**
* If CPC processes the return and you receive an **intimation u/s 143(1)** with a refund, but then an issue arises (like refund denied or under dispute), you can file a **Rectification Request u/s 154** to correct the error.
* But you can only **rectify clerical mistakes**, not change the return type or books maintenance status materially.
#### 4. **File a Grievance on e-Nivaran or Contact CPC**
* Explain the situation clearly via the **e-Nivaran portal** or call CPC.
* State that books were maintained but wrongly marked as "no books".
* If the refund is held or questioned, they may allow you to submit supporting documents manually.
---
### 📌 **What to Do Now:**
Since:
* The return is belated (u/s 139(4)),
* You cannot revise it, and
* ITR-V has **not been sent**,
Your best option is:
### ✅ **Do Not Send the ITR-V**
Wait for the 30-day window to lapse, then **re-file the return correctly** as a **manual filing with the Assessing Officer** along with a written explanation and evidence (especially if AY is old and refund is held up). You may have to file a **condonation request u/s 119(2)(b)** to get refund processed.
---
### ⚠️ Final Note:
For **current and future years**, avoid such errors and always:
* Ensure correct books-of-account status,
* Use digital signature or Aadhaar OTP to avoid ITR-V issues,
* Avoid belated returns unless absolutely necessary.
Let me know if you'd like help drafting a **condonation request** or **grievance letter to CPC**.
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