Invalid return

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

10 April 2013 Dear Experts

Sir, i filled a income tax return of AY-2011-12 on 25-7-2011 manually. I have contract receipts of Rs.26 lacs, so i filled the return manually. But the TDS was deducted u/s 194J instead of 194C. On these basis, the income tax officer, issue me a letter saying that your return is invalid as you have filled return manually and you have also taken audit report u/s 44AB.

I gave a reply that as i do not cover under tax audit, so no audit report was taken. If you think that audit was necessary, then i gave him reply you take penalty @ 0.50% of my receipts and allow me the refund of balance amount.

In response to my reply officer issued me a notice u/s 147.
Now, what should i do.

Thanks in advance

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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10 April 2013 Better to you contact any CA. As well as my suggestion is first get the certificate from the payer who deducted TDS u/s 194J instead of 194C as they paid contract fee but unfortunately we deduct TDS u/s 194J but we didn't notice the mistake till it is identified by the contractor with details of the work provided by you etc.... because of it may use full to you to support your answer to the AO for your further proceedings.

OM SAI SRI SAI JAI JAI SAI

CA Prashant Shrivastava

CA Prashant Shrivastava (Expert)
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10 April 2013 In addition to suggestion given by the expert, plz note that AO issues notice u/s 148 of IT Act and ask to file the return of income.
Basically notice u/s 148 issued by AO when he has reason to believe that any income has been escaped. In aforesaid case AO can issue notice u/s 143(2) and can ask for demand.
As such inform all the facts to your consultant and act accordingly.

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Querist : Anonymous

Querist : Anonymous (Querist)

16 April 2013 Sir,
On wbat grounds return is invalid. If return is invalid, then under what circumstances the assessing officer can impose penalty of 1/2%. In my opinion this is the only case when the assessing officer can impose penalty of 1/2%, Then how he is saying the return is invalid.