Is this action of ito justified ?

This query is : Resolved

CA Sahil Singla.. (Querist)
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12 September 2012 Sir

A proprietor of a firm who is required to get it's account Audited u/s 44AB.
recently got notice under Section 139D(c) for the A.Y. 2011-12 requiring him to produce in ITO's office the copy of Audit Report, Balance sheet & computation of Income.
He has filed his Return electronically for the relevant year.Please tell me, whether the notice is valid ? According to me, it only Authorises Board to make rules in this behalf. Are there any rules issued by Board till now ?

PARDEEP KUMAR AGGARWAL

PARDEEP KUMAR AGGARWAL (Expert)
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13 September 2012
« Income-Tax Act - Section No. 140... Income-Tax Act - Section No. 139C... »

Income-Tax Act - Section No. 139D
September, 07th 2010

Filing of return in electronic form.

139D. The Board may make rules providing for—

(a) the class or classes of persons who shall be required to furnish the return in electronic form;

(b) the form and the manner in which the return in electronic form may be furnished;

(c) the documents, statements, receipts, certificates or audited reports* which may not be furnished along with the return in electronic form but shall be produced before the Assessing Officer on demand;

(d) the computer resource or the electronic record to which the return in electronic form may be transmitted.]

Now as per the above law extract, Since returns have become annexure less, this section has been incorporated only to call for the documents which are supposed enclosed till the time returns have been made annexureless. So action taken by AO is appropriate.

CA Sahil Singla..

CA Sahil Singla.. (Querist)
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13 September 2012 But where r d rules ?. This section giv power only to board & not ao

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13 September 2012 NEW RETURN FORMS FOR ASSESSMENT YEAR 2009-10 MATTERS CONNECTED THERETO
CIRCULAR NO. 03 / 2009, DATED 21-5-2009
relevant para :
5 In exercise of the powers conferred by section 139D of the Income Tax Act,1961 (hereinafter referred to as ‘the Act‟), ( read with clause (eebb) of sub-section (2) of section 295 of the Act, sub-rule (3) of the said rule provides that-
(a) it shall be mandatory for the firms to whom provisions of section 44AB are applicable and for the companies (other than the companies claiming exemption under section 11) to furnish the return of income/ fringe benefits electronically in the manner mentioned at (ii) or (iii) of paragraph 3;
(b) the return of income/ fringe benefits in Form ITR-7 by charitable/ religious trusts, political parties and other non-profit is to be furnished in the paper form only; and
(c) all other taxpayers have the option to furnish the return of income/ fringe benefits in any of the manner mentioned in paragraph 3.
6. In exercise of the powers conferred by section 139C of the Income Tax Act,1961 (hereinafter referred to as ‘the Act‟), read with clause (eeba) of sub-section (2) of section 295 of the Act, sub-rule (2) of the said rule provides that the returns required to be furnished in above mentioned Forms (except in ITR-7) shall not be accompanied by any attachments/ annexures. Thus, taxpayers should not enclose with these return forms any statement showing the computation of income or tax, copies of balance-sheet, profit and loss account, TDS/ TCS certificates, proof of payment of advance tax or self-assessment tax. However, these documents shall have to be produced before the Assessing Officer on demand by him. The Chief Commissioners of Income-tax/ Commissioners of Income-tax must ensure that documents if any, annexed with these returns or Form ITR-V are detached at the time of receiving these returns/ ITR-V and are returned to the taxpayers immediately.

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