Notice u/s-139(9) - urgent

Tax queries 669 views 7 replies

Professional Student

Student

85 Points Joined March 2017

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)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

209862 Points Joined July 2016

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

Professional Student

Student

85 Points Joined March 2017

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.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

209862 Points Joined July 2016

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.

Professional Student

Student

85 Points Joined March 2017

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??

Professional Student

Student

85 Points Joined March 2017

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??