We filed ITR IV for F.Y. 2010-11 using ITR IV form provided by the IT deptt. Amount of depreciation was filled in Profit and Loss account. The amount of depreciation allowable under IT Act was again filled in Col. 12 (ii) in Shedule BP (Computation of Income from Business or profession). Now we have received Intimation u/s 143(1) stating Demand and amt. of depreciation is not considered. Though the Income tax calculated while submitting the ITR IV reflects refund but the intimation u/s 143(1) received states a Demand. The difference in Income from Business or Profession (at col. 3 - Head of Income) reflects the exact difference equivalent of depreciation)
WHAT COULD BE THE REASON.
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