Urgent
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
06 January 2013
Dear Sir,
I am a furniture manufacturer. In AY 2010-11, I did not file my IT return because in that year my timber purchase was Rs. 3258000/- and my sales were only Rs. 2315000/-, therefore to avoid any query about investment in purchase, I preferred not to file my return.
Now I have received and intimation from local office, stating that -
You have received a sum of Rs. 1782660/- in AY 2010-11, and you have not filed any return for the same year. If you have filed any return for the relevant AY, then provide its copy within 3 days from the receipt of this intimation. This is not a statutary notice.
Thereafter, I checked my form 26as for AY 2010-11, and found that it is reflecting the sum of Rs. 1782660/-, which was my timber purchase from forest department and forest department deducted TCS thereon. This sum is equal to sum stated in intimation.
Now please guide me on following points -
1. When this is my business expenditure, then why is department saying it as receipts.
2. Whether I can file return for the AY 2010-11, even after it has been time barred.
3. I should file return online or manually.
4. Practically, I should show my purchase which is being reflected in form 26AS
or I should show the whole purchase.
Please advice me proper remedy, I would be very greatful to you.
Thanks in advance.
I am a furniture manufacturer. In AY 2010-11, I did not file my IT return because in that year my timber purchase was Rs. 3258000/- and my sales were only Rs. 2315000/-, therefore to avoid any query about investment in purchase, I preferred not to file my return.
Now I have received and intimation from local office, stating that -
You have received a sum of Rs. 1782660/- in AY 2010-11, and you have not filed any return for the same year. If you have filed any return for the relevant AY, then provide its copy within 3 days from the receipt of this intimation. This is not a statutary notice.
Thereafter, I checked my form 26as for AY 2010-11, and found that it is reflecting the sum of Rs. 1782660/-, which was my timber purchase from forest department and forest department deducted TCS thereon. This sum is equal to sum stated in intimation.
Now please guide me on following points -
1. When this is my business expenditure, then why is department saying it as receipts.
2. Whether I can file return for the AY 2010-11, even after it has been time barred.
3. I should file return online or manually.
4. Practically, I should show my purchase which is being reflected in form 26AS
or I should show the whole purchase.
Please advice me proper remedy, I would be very greatful to you.
Thanks in advance.
06 January 2013
1. What the department is saying is -"Sleep of Tongue". They may mould the situation in its correct form.
.
2& 3.You can not file the return unless so told in the notice.
.
4. Show purchases to the extent you are having supporting in the form of Bills, Bank Transaction etc. Have a consultation with your CA in this regard.
.
.
2& 3.You can not file the return unless so told in the notice.
.
4. Show purchases to the extent you are having supporting in the form of Bills, Bank Transaction etc. Have a consultation with your CA in this regard.
.
Message likes :
1 times
07 January 2013
complete agree with CA Paras Bafna
Querist : Anonymous
Querist :
Anonymous
(Querist)
07 January 2013
If I can not file return, then what should I do, in responce of that intimation?
02 August 2025
Here’s what you can do in response to the intimation, since you’re unable to file the return for AY 2010-11 (as the time limit for filing it has passed):
---
### 1. **Reply to the Intimation / Notice**
* Draft a **written reply** to the Income Tax department explaining the situation clearly:
* Mention that the amount of Rs. 17,82,660/- is related to **timber purchases** on which TCS was deducted by the Forest Department.
* Clarify that this amount is a **business expenditure** and not income or receipt.
* State that you had not filed the return for AY 2010-11 due to this mismatch in purchase and sales figures and timing issues.
* Mention that the time limit for filing a belated or revised return for AY 2010-11 has expired under section 139(4) of the Income Tax Act.
---
### 2. **Request for Adjustment / Consideration**
* Request the department to consider the explanation and that no return was filed since the time limit has expired.
* Ask if any further documentation or clarification is required.
* Express your willingness to cooperate fully.
---
### 3. **Keep Records Ready**
* Keep ready all your **purchase bills, payment proofs, bank statements**, and any documents supporting the timber purchase.
* These will help in case the department asks for verification or calls for assessment.
---
### 4. **Consult Your CA**
* Share your reply draft and documents with your Chartered Accountant.
* They can guide you on whether any further action like filing a **writ petition or application for condonation of delay** (if applicable) is possible.
---
### Sample Reply Outline:
```
To,
The Assessing Officer,
Income Tax Department,
[Address]
Subject: Reply to Intimation dated [Date] for AY 2010-11 (PAN: XXXXXXX)
Respected Sir/Madam,
I refer to the intimation received on [Date] regarding non-filing of return for AY 2010-11.
I wish to inform you that the amount of Rs. 17,82,660/- mentioned in the intimation corresponds to timber purchases made from the Forest Department, on which TCS has been deducted by them. This amount is a business expenditure and not an income or receipt.
Due to the mismatch between sales and purchases in that year and other reasons, I did not file the return for AY 2010-11. Moreover, the statutory time limit for filing a belated return for that assessment year has expired.
I assure full cooperation and am ready to provide any supporting documents or clarifications as required.
Kindly acknowledge this submission.
Thanking you.
Yours faithfully,
[Your Name]
[Your Contact Details]
```
---
If you want, I can help draft a formal reply letter for you. Would you like me to prepare that?
---
### 1. **Reply to the Intimation / Notice**
* Draft a **written reply** to the Income Tax department explaining the situation clearly:
* Mention that the amount of Rs. 17,82,660/- is related to **timber purchases** on which TCS was deducted by the Forest Department.
* Clarify that this amount is a **business expenditure** and not income or receipt.
* State that you had not filed the return for AY 2010-11 due to this mismatch in purchase and sales figures and timing issues.
* Mention that the time limit for filing a belated or revised return for AY 2010-11 has expired under section 139(4) of the Income Tax Act.
---
### 2. **Request for Adjustment / Consideration**
* Request the department to consider the explanation and that no return was filed since the time limit has expired.
* Ask if any further documentation or clarification is required.
* Express your willingness to cooperate fully.
---
### 3. **Keep Records Ready**
* Keep ready all your **purchase bills, payment proofs, bank statements**, and any documents supporting the timber purchase.
* These will help in case the department asks for verification or calls for assessment.
---
### 4. **Consult Your CA**
* Share your reply draft and documents with your Chartered Accountant.
* They can guide you on whether any further action like filing a **writ petition or application for condonation of delay** (if applicable) is possible.
---
### Sample Reply Outline:
```
To,
The Assessing Officer,
Income Tax Department,
[Address]
Subject: Reply to Intimation dated [Date] for AY 2010-11 (PAN: XXXXXXX)
Respected Sir/Madam,
I refer to the intimation received on [Date] regarding non-filing of return for AY 2010-11.
I wish to inform you that the amount of Rs. 17,82,660/- mentioned in the intimation corresponds to timber purchases made from the Forest Department, on which TCS has been deducted by them. This amount is a business expenditure and not an income or receipt.
Due to the mismatch between sales and purchases in that year and other reasons, I did not file the return for AY 2010-11. Moreover, the statutory time limit for filing a belated return for that assessment year has expired.
I assure full cooperation and am ready to provide any supporting documents or clarifications as required.
Kindly acknowledge this submission.
Thanking you.
Yours faithfully,
[Your Name]
[Your Contact Details]
```
---
If you want, I can help draft a formal reply letter for you. Would you like me to prepare that?
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