Return Invalidated for AY 21-22 - tax audit not performed but income is below 5cr lmit

Hi experts,

We have received a return invalidated notice u/s 139(9) for AY 21-22 stating

Tax audit is applicable but taxpayer has not filled up Balance Sheet and Profit and Loss Account and has not got the books of account audited.
Since the defects were not rectified, as per the provisions of section 139(9) of the Income Tax Act, 1961, the return of income for A.Y. 2021-22 filed on 30-Mar-2022 vide Acknowledgement Number XXXXXX is, therefore, treated as INVALID.

 

However, for our concern ,  the total sales / revenue is below the 5 cr limit and all the revenue is also from digital banking. Hence, we are not applicable for tax audit based on this provision.  

We have already received an earlier defective notice In August 2022 with this, however we have replied to the defective return notice stating that the above information i.e. total sales is below the 5 cr limit hence not applicable for tax audit. 

Yet, we have once again received the defective return and now the return filed has been invalidated. 

We have refund to be obtained from the return.

Please advice how this issue can be resolved.

Thank you. 

Replies (1)

The action required to be taken against earlier intimation u/s. 139(9) of the act was not complete, hence the INVALIDATION.

As such no action against the order can be taken, but if you wish you may file updated return with proper selection of tags with some amount of tax payable.

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