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Section 44AA of Income Tax Act- ITR Defective notice u/s 139(9)

Pratik Agarwal (Assistant Audit Manager)   (8 Points)

11 May 2021  

I am a Partner in CA Partnership firm and I filled ITR 3 for A.Y. 2020-21. I received a notice from IT dept. that my return is defective stating that "Taxpayer is offering Income under the head Profits and gains from Business or Profession. Hence, as per the provisions of Sec.44AA, the taxpayer is required to maintain books of accounts. However, as seen from the return, the taxpayer has not filled up Part A of the Profit and Loss Account and Balance Sheet. Further, income from business has not been offered under presumptive taxation, if eligible". 

Kindly give your suggestion whether I am supposed to maintain books of account u/s 44AA, my annual income is less than Rs.25 lakhs. Whether Partner of CA partnership firm required to maintain books of account.

Regards

 

 


 8 Replies

Sourav (Student) (23917 Points)
Replied 11 May 2021

You should file a revised return against such notice
1 Like

veerendar singh (tax consultant) (2818 Points)
Replied 11 May 2021

Do you have anything on your itr under business head apart from income from firm?

Pratik Agarwal (Assistant Audit Manager)   (8 Points)
Replied 11 May 2021

No.I have only income from firm.

veerendar singh (tax consultant) (2818 Points)
Replied 11 May 2021

Then you must simply select "income from firm only" in the nature of business and file the same return again without making any changes.

Raghavendra Kamath (143 Points)
Replied 11 May 2021

If you have shown gross income above 2.50 lacs, section 44AA is attracted. file response with bal sheet and p&l. else take shelter under 44AD without changing the figures

veerendar singh (tax consultant) (2818 Points)
Replied 11 May 2021

Dude he does bot have any taxable income. what would he show under 44ad?

Raghavendra Kamath (143 Points)
Replied 11 May 2021

I see.  You are right

kunal trivedi (2 Points)
Replied 11 May 2021

File itr 3 ,and select column 44ad, 44ada and enter income in that section,such sections specifically given in itr3 itself,do not enter in no books of accounts maintain " income from bussiness",income from professions as the case maybe ,kindly submit your X M L against the order.

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