One of my clients is a retail merchant in general goods. He has house property income from two houses. Besides, he has agricuture income exceeding Rs.5,000.
For the Assessment Year 2016-17, Gross Turnover Rs.15,00,000., Gross Profit-Rs.3,00,000.Expenses-Rs.1,20,000. Net Profit - Rs.1,80,000. Income admitted is more than 8% of the Turnover. Return Form ITR 4 is opted. In Part A of P&L Account, the above details are entered in the columns under No Accounts Cases. SImultaneously, in Schedle BP, Rs.1,80,000 was filled up against Column Income under 44AD. So far,all IT returns were accepted till Assessment year 2015-16. For 2016-17, received intimation from CPC, stating that, ' The Return is defective under section 139(1). Reason- Taxpayer not filled Balance Sheet and Profit & Loss Account. Probable Resolution given in the letter - Profit & Loss Account and Balance Sheet sould be entered in the corrected Return.
Query:
1.When we opt for Declaration of income under section 44AD, there is no need to fill up Profit & Loss Account and Balance Sheet as it is a, 'No Books of Account Case'. Similar such Notices have been received from CPC for other cases also for this year only.
In one such case, where Balance Sheet is fliled up and corrected return uploaded, again the party received reminder letter from CPC to submit corrected return.
What is the soution?
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