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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.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

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.
.

Message likes : 1 times

CA Prashant Gupta

CA Prashant Gupta (Expert)

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?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

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?

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