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Proposed Adjustments u/s 143(1)(a)

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Arjun Kumar Sadhu

40 Points Posted on 14 November 2022

Sir the Respected CA has mentioned my other sources income in Clause 16(d) of Audit report form 3CD, But I have shown those income in the Schedule income from Other Sources. Now I have received a Notice of adjustment of those income. what shall I do now. Please suggest a suitable way... thanks in Advance.

Replies (4)

Quick Summary

A user received a notice for income adjustment under section 143(1)(a) of the Income Tax Act because income from other sources was mentioned in Clause 16(d) of their Form 3CD but also declared in the 'Income from Other Sources' schedule. They are seeking advice on how to respond, especially after a previous attempt to dispute a similar demand was unsuccessful. The advice suggests disagreeing with the demand and clarifying that the income was already declared. It also highlights that Clause 16(d) is for income not credited to the P&L and advises consulting with the CA who filed the audit report to ensure correct reporting and draft an appropriate reply.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121546 Points Posted on 14 November 2022

Disagree to the demand stating that the income has already been declare under head 'Income from Other Sources', as the income is not related to business income.

Arjun Kumar Sadhu

40 Points Posted on 14 November 2022

But sir in the Last year the CPC has not accepted our response and had served a Demand Notice.

Manoj BG

Tax Professional and in Service

1637 Points Posted on 14 November 2022

Please note that clause 16(d) is for income not credited to P&L. What is the treatment given in financial statement for that other source income. If it is not credited to P&L, what is the reason thereof. If it is already credited to P&L even if reported under income from other sources in return, there was no need to report said transaction under clause 16(d) of 3CD. If it proves incorrect reporting in 3CD, you can revise the same in consultation with your CA. Accordingly, you need to draft suitable reply to drop off the proceedings.

Consult with your CA who have filed your Form 3CD. He would be in better position to provide you the reason/resolution.

Regards,

Manoj