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Notice u/s 143(1)

Muhammad Nazim (Chartered Accountant) (86 Points)

16 July 2010

Respected sir

One of my client filed ITR4 on line for the AY 09-10 showing business income 290000

On 25/05/2010 my client received Notice u\s 143(1) showing income 590000 and demand around 56000rs but there is no reason in the notice why income increase no disallowance show, no other income added in the notice.

What should I do in that situation please advice

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11 Replies

Amir (Learner) (4016 Points)
Replied 16 July 2010

Dear Sir,

It is difficult to speculate what could be the reason behind that INFLATED 143(1) intimation.

It seems there is an error either on part of AO or on part of the person who had filled the ITR Form since additions u/s 143(1) of more than twice the amount of Income declared by the assessee is something which raises doubt.

Keep in mind u/s 143(1) AO can disallow only those claims which are apparently incorrect.

I think in the present case a personal visit to AO along with the copy of intimation is the best option before depositing the amount.

First ascertain the fact before taking any action.

RAJ (CA) (120 Points)
Replied 17 July 2010

Your client filed ITR4 online for the AY 09-10 showing business income 290000. On 25/05/2010 he received Notice u\s 143(1) showing income 590000.

Firstly check the E-filling status online.:

Your client could have made mistake while entering some figures, like instead of Rs. 290000/- your client might have written Rs. 590000/-

Secondly also Check as to what is the amt of the Gross Receipts/ Sales, like is it above Rs. 5,90,000 or below this figure.

If it is below this figure than there is some mistake apparent.

Member (Management) (325 Points)
Replied 18 July 2010

I endorse the replies above, with just one correction. No adjustment is possible as Amir has stated. Only those claims which are patently inadmissible like set off business loss against salary or higher interest claimed under HP etc.are corrected that too by the automated software which the Departmental people are using.

Rohit Khaitan (Learning from Life) (127 Points)
Replied 19 July 2010

Don't Worry..

As the 143(1) notice is just the Intimation with regards the arithmetical processing of the online return provided by you to the IT Department. It is also called Summary Assessment. As per Income Tax Act 1961, if we are not satisfied by the Intimation u/s 143(1) then we should file an application under section 154 of the IT Act 1961, in which we will provide the details which has been escaped from the Consideration of AO while preparing the summary assessment.

Basically we will be providing the ITR V(Return verification Form of Acknowledgement) showing Gross Income and details of return And IT Comutation of the Client on the basis of which we have filed the return(As Enclosures to the rectification Letter).

Now there are 2 parts.. Firstly if the intimation is received from the WArd then It should rectification u/S 154 letter should be submitted in the Ward and an order u/s 154 shall be chased from the department which itself is the correct Assesment.

Secondly if the intimation is received from CPC bangalore( i.e. Central Processing centre) then the same letter seeking rectification u/s 154 shall be sent to the CPC address at Bangalore seeking reference of the Intimation Letter..

If any more assistance you require on this issue , then you can feel free to contact me at my mail address. which is in pm to you..

Hope the above would serve your purpose.

imthiyaz (Tax software Devt professional) (41 Points)
Replied 22 July 2010

Dnt worry

It can be rectified by sending rectification letter to the CPC bangalore address. Send the letter with the following details.

Name

Pan No.

Reason

Correspondence reference No.

Send the letter to the following address.In the cover mention " Rectification letter for the AY 2009-10"

Income tax officer

CPC-Income tax Department

Electronic City Post Office,

Bengaluru, Karnataka-560100

Letter should be sent through ordinary post or speed post. Registred post is not allowed.In the address don't mention the post bag no.

Amin Nurdin (Tax Consultant) (21 Points)
Replied 23 July 2010

I agree with Imthiyaz. that should be the procedure to deal with CPC.

CA. Mohit Jain (Chartered Accountant) (21 Points)
Replied 14 July 2011

Can anybody throw some light on the issue that Intimation U/s 143(1) is a Assessment or not?? And if 143(1) is an Assessment then how come 143(2) is done after 143(1). In that case only 147 can be done after 143(1) which Assessment or Reassessment.

I hope in the above issue, Rectification U/s 154 will not work as it is not the mistake apparent from record. He/She should file revised return.

Tushar Arora (CA Finalist & Article) (179 Points)
Replied 14 July 2011

@ mohitjain sir..

now you can file reply of 143(1) online..

just generate xml file either using origanal ITR filed in 09-10 or in new ITR.

upload the xml file after login by using information on 143(1) notice..

(Guest)

this is possible if you have left some columns blank. Like you claimed depreciation in P & L A/c and detail of calculation has been left blank. https://taxbykk.blogspot.com/

CA. Mohit Jain (Chartered Accountant) (21 Points)
Replied 16 July 2011

Goodmorning Kaushalji,

Is it necessary that the coloumn remains blank. Cant we file a Revise Return.

K V SRINIVASA RAO (AUDIT MANAGER) (23 Points)
Replied 16 July 2011

can any body provide format letter of Rectification of mistake u/s 154 of the Income Tax Act , not consdered the brought forward losses by the department.