Notice u/s-139(9) - urgent

Respected Sir / Madam, an assessee has received a notice u/s-139(9) stating as follow:

Error Code 311

Error Descripttion Taxpayer having income under the head “Profits and gains of Business or Profession” but has not filled Balance Sheet and Profit and Loss Account as required in explanation (f) under section 139(9) read with section 44AA.

Probable Resolution The Part B of the Profit and loss account and Part B of the Balance Sheet (i.e No Account Case Section) should be entered in the corrected return without which the return filed earlier is liable to be treated as invalid.

At the time of filing ITR for A.Y. 2018-19, ITR 3 has been filed instead of ITR 4 (presumptive taxation), as the assessee was facing some technical issues while uploading .X M L file. He earned 12 lakhs from consultancy income but no account maintained & has refund of Rs.1.20 lakhs.

Can he now in response to this notice, in his submission online "DISAGREE" with this & state in the reason the fact stated above & file ITR 4 as then there will be no requirement to file B/S & P &L?

Will changing ITR number be considered as Revised & will make the original ITR 3 filed as invalid & Penalty u/s-234F of Rs.10,000 will also have to be paid?

Any other alternative to get the refund back & avoid penalty u/s-234F like filing hypothetical figures in P & L & B/S, or anything other way?

Please Advice.

 

Replies (7)

No penalty or late fees.... respond to the defect in affirmation and file ITR4 under attachment.

But sir assessee is having house property loss to be carried forward but no option for that in ITR 4...the assessee is in engineering consultancy service where a lumpsum payment is made but TDS deducted u/s-194J..no account maintained by assessee..besides, no expenses for earning that income or assets or liabilities like a firm..he has claimed 50% expenses & shown in ITR 3 as per sec-44ADA.

It suggests that ITR3 was not filed under 'No accounts case' option, for professional receipts (properly). if that be the case refile ITR3 with correction.

Or you have two options, either file ITR4 without loss to be carried forward u/h IFHP; or file ITR3 with P&L and BS details.

Actually Sir, the Profit & Loss Account (Part B),i.e. for No Accounts Case, it has been filled up but the Part B of Balance Sheet (i.e., No Account Case) he has filed Zero in Debtors, Creditors, Stock & Cash Balance as he doesn't have any such items, though cash in hand can be mentioned on estimate basis. So can he put imaginary figures in ITR 3 to get the benefit of house property loss also, as the notice doesn't mentioned to fill Part A of P && L A/c & B/s which is required to be filed as engineering is considered as specified profession where books of account should be maintained u/s-44AA.

And the notice came form CPC, Bangalore throgh computerised processing not from jurisdictional A.O, so will it be safe Sir??

I know that sec-44ADA also can be claimed by filing ITR 4 & not ITR 3, but that cannot be changed now as then the original ITR will become invalid then, so may be by putting imaginary figures, he may get away with this. Your verdict sir??

As well said in first part, there were defect in BS figures, so rectify the same and upload the new ITR3 with removal of defects.

Thank you Sir for your cooperation & advice..

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 11 July 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
Featured 16 July 2026
Semi Qualified Company Secretary

Vakilsearch.com

Chennai

CS

View Details
Company
28 July 2026
Senior accountant

RJ Public School

Bengaluru

B.Com

View Details
Company
ARTICLESHIP 16 July 2026
Article Assistant

Sahil Agarwal & Company

Mumbai

CA Inter

View Details
Company
21 July 2026
Chartered Accountant

Keshri & Associates

Thiruvananthapuram

CA

View Details
Company
05 July 2026
Financial Controller

NovumLake Partners

Mumbai

CA

View Details
Company
06 July 2026
Chartered Accountant (Indirect Taxation)

Gowra Ventures Pvt Ltd

Hyderabad

CA

View Details
Company
14 July 2026
Senior Executive/ Manager

H S SHARMA AND CO

Pune

CA Final

View Details
Follow