Urgent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 July 2013 Dear Sir,
One of assessee had done work contract in fy 2010-11, and his gross receipts are Rs. 1900000/- and tds deducted thereon is Rs. 19000/-. That assessee did not file his IT return for the same year.

Now he has received an non-statutory intimation from department asking him that he has received the sum of Rs. 19 lacs and submit his response within 7 days of receipt of this intimation.

Now please advise me on following points -

1. What should I state in responce of that intimation.

2. Whether the IT return for the AY 2011-12 can be file now in responce of that intimation.

3. Whether the assessee can seek his refund by opting section 44AD, then his net profit would come to Rs. 156000/- which is below exemption limit.

4. What are the enclosers that I should enclose with my responce.

Please reply soon, its urgent.

Thanks in advance.

Rupesh Jain

Rupesh Jain (Expert)
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02 July 2013 r/sir

you can not file return due to inocme tax assessment already complete till 31.3.2013

you can do only one thing
if assessee maintain books of a/c
then take audit repoort from CA

then you claim the your income is below taxable limit. so you not file his income tax return.

u/s 44AD when apply then you file return .
but you have not file any return

Querist : Anonymous

Querist : Anonymous (Querist)

02 July 2013 actually assessee is not maintaining accounts. Except bank passbook and and form 16A, he has nothing in accounts.
Now what is practical soulution of problem.

Querist : Anonymous

Querist : Anonymous (Querist)

02 July 2013 How is the idea to state in responece that this 19 lacs amount is his gross receipts of work contract business and net profit in that year was below the exemption limit, therefore return is not filed.
and then wait till the department next intimation asking him to file IT return and then file IT return showing profit above 8% but below exemption limit.

Rupesh Jain

Rupesh Jain (Expert)
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03 July 2013 r/sir

your case is very complecated due to violance of law

i given reply above for possibilty for avoide the penalty and you can try to save himself.

Querist : Anonymous

Querist : Anonymous (Querist)

03 July 2013 When assessee's income is below the exemption limit than what is the violance of law. As it is not mandatory to file return where income is below the exemption limit.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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02 August 2025 Here's a clear breakdown addressing your queries about the case:

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**1. What to state in response to the intimation?**

* Clearly state that the Rs. 19 lakhs is the **gross receipt** from work contract business for AY 2011-12.
* Explain that the **assessee did not maintain books of accounts** and hence did not file return earlier.
* Mention that as per section 44AD, the net profit is presumed at 8%, which works out to Rs. 1,52,000 (approx).
* Highlight that the **net profit is below the basic exemption limit** for individual/firm, so the assessee believed filing return was not mandatory.
* Request the department to kindly allow filing the return if required or guide the assessee accordingly.

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**2. Can the IT return for AY 2011-12 be filed now?**

* If the assessment for AY 2011-12 is **not yet completed or reopened**, the return can be filed within the permitted time.
* However, if the **assessment is already completed** and the time limit for filing return is over (usually 1 year from end of AY), then you **cannot file a regular return** now.
* If delayed, you may explore filing a **belated return**, but it depends on whether the department accepts it or not.

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**3. Can assessee claim exemption by opting for section 44AD?**

* Section 44AD allows presumptive taxation at 8% of gross receipts (6% if payment is digital).
* If net profit under 44AD is below basic exemption limit, then yes, assessee’s income is effectively non-taxable.
* However, even if income is below exemption limit, **filing ITR is mandatory if TDS is deducted** or if notice is received.
* So, it is advisable to file ITR showing income under 44AD.

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**4. What enclosures to attach with the response?**

* Copy of the intimation received from the department.
* Copy of bank passbook / bank statement reflecting receipts and payments.
* Form 16A evidencing TDS deducted.
* Any other supporting document to prove gross receipts.
* Declaration / affidavit mentioning non-maintenance of books and income under 44AD.
* If applicable, Chartered Accountant’s certificate supporting net profit calculation under 44AD.

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**Additional practical advice:**

* It’s better to **file the belated return** if possible to avoid penalty or scrutiny.
* If the assessment is completed, send the above response clearly explaining the facts and request further guidance from the department.
* Keep all communication documented and professional.

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If you want, I can help draft a formal reply letter/email for this intimation. Would that help?

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