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Mass errors in 143(1) processing

Rajagopalakrishnan R (PARTNER) (1417 Points)

28 February 2012

Dear Members

in the Last 2 weeks we received at least 60-70 intimations u/s 143(1) of our clients in which consistently the depreciation claimed under the IT act has not been allowed. I.e from the P & L account, the PBT is taken as the business income, completely ignoring the depreciation schedules.

I checked the XML's and they seem to be OK

have any of our friends received such intimations?

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1 Replies

Vignesh Killur (Articled Assistant) (1666 Points)
Replied 28 February 2012

Hi SIr,

For every difference in the Income as reported by you and income computed U/s 143(1) by the Dept, there will be a reason. Please go through the Common error guide released by the IT Department.

Please check the following:

1. In ITR 4, Part A-P&L A/c please see if the Item No. 43: Profit Before taxes TALLIES with Item No 1 of Schedule BP.

2. Please see that you have filled in Item No, 12(i) of Schedule BP i.e Depreciation allowable U/s 32(1)(ii)

3. Please see that Schedule DPM, DOA, & Schedule DEP are properly filled, the percentage of Depreciation is correctly filled and Column 6 of Schedule DEP tallies with Item No 12(i) of Schedule BP

We have never had a problem so far as regards Depreciation.