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Demand as per 143(1)

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RAHUL B.

CHARTERED ACCOUNTANTS

74 Points Posted on 11 February 2021

Hello

Received a demand of Rs. 1.5 lacs alongwith interest u/s 143 (1) in intimation for AY 19-20

Earlier I filed ITR-4 (which was a mistake) and reported exemption u/s 10(26) - scheduled tribe exemption. However, I also showed business income and tax was calculated but I left it unattended and submitted the return. However, I should have not shown any income and just reported exemption . I confused exemption for deduction.

can anyone help with the way out ? Shall I file rectification ? If yes, then shall i submit XML or just reprocess? Or there is other way out ?

PS - Scheduled tribe exemption is applicable to the client.

Replies (2)

Quick Summary

A user filed ITR-4 for AY 19-20, mistakenly reporting business income alongside a Schedule Tribe exemption (u/s 10(26)). This led to a demand of Rs. 1.5 lacs plus interest under Section 143(1) of the Income Tax Act. The user now seeks advice on rectifying the return, wondering if a rectification filing is the best approach and how to proceed with it, or if there are alternative solutions.

sabyasachi mukherjee

Profession

19978 Points Posted on 11 February 2021

Sec 143(1) is being invoked in the following cases:
1. where any income declared in the return of income has been wrongly computed or incorrect claim
2.disallowance of loss claimed
3. disallowance of expenditure indicated in the audit report
4. disallowance of deduction claimed under sec 10AA, 80 IA, 80 IAB,80IC OR RETURN FILED AFTER DUE DATES AS MENTIONED UNDER SEC 139(1).
4.