Itr using excel utility_mistake

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 November 2011 One of my client filed ITR through excel utility. But by mistake his income under the head PGBP was written as 12 lacs instead of 120000. But the excel utility did not displayed the amount of tax and XML file was generated. he filed that electronically. The xml file and the acknowledgment also was not displaying the amount of tax payable. it was showing zero figure. so, he didnot noticed the mistake done.

Now, department sent the intimation u/s 143(1) and demanded the tax as computed on the income of Rs.12 lacs. I filed request for rectification which has been rejected.

now what should I do to protect that innocent person?

CA Deepak S

CA Deepak S (Expert)
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23 November 2011 If the date of filing revised return is not over you revise the return first.

Querist : Anonymous

Querist : Anonymous (Querist)

23 November 2011 the return was filed u/s 139(4). It was also not revised.

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Querist : Anonymous

Querist : Anonymous (Querist)

23 November 2011 please reply

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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23 November 2011 You will have to e-file a rectification application.

For assistance in filing the same, go through this link:

https://www.caclubindia.com/share_files/e-filing-rectification-manual-42744.asp

Querist : Anonymous

Querist : Anonymous (Querist)

23 November 2011 i filed rectification application, but it has been rejected by the department

Asha Kanta Sharma online

Asha Kanta Sharma

(Expert)
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02 August 2024 In your situation, where an error was made in the ITR due to incorrect data entry and now the rectification application has been rejected, here’s a step-by-step approach to address the issue and protect your client:

### Steps to Resolve the Issue:

1. **File a Revised Return**:
- **Eligibility**: Even though the return was filed under section 139(4) (belated return), you can still file a revised return under section 139(5) if the original return was filed and if it is within the time limits allowed for revision.
- **Procedure**: Prepare a revised ITR correcting the income amount from 12 lakhs to 1.2 lakhs. Ensure that the revised return reflects the correct tax computation.
- **Process**: Upload the revised return using the appropriate ITR form, and ensure the error is corrected.

2. **Appeal Against the Intimation**:
- **Notice Details**: Carefully review the intimation under section 143(1) and the reasons for demand.
- **Appeal**: If the rectification application was rejected and if the revised return does not work, you can file an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)].
- **Documentation**: Prepare a detailed explanation of the error, including the incorrect amount filed and the corrected figures. Include the acknowledgment of the original and revised returns, along with any supporting documentation.

3. **Respond to Demand Notices**:
- **Follow-Up**: If you receive a demand notice, respond promptly. Explain the situation and provide a copy of the revised return (if already filed).
- **Request for Waiver**: If applicable, request a waiver or reduction of the penalty based on genuine mistake and lack of intention to evade taxes.

4. **Consult a Tax Professional**:
- **Expert Advice**: Given the complexity and potential repercussions, consult with a tax professional or chartered accountant who can provide specialized advice and help in preparing the necessary documents for appeal or representation.

5. **Corrective Actions**:
- **Track Communication**: Keep a detailed record of all correspondence with the Income Tax Department, including notices, responses, and appeals.
- **Ensure Compliance**: Make sure that all future returns and filings are accurate and filed timely to avoid similar issues.

6. **Prepare for Possible Consequences**:
- **Interest and Penalty**: Be prepared to settle any interest or penalties that might arise from the error. The department may impose penalties for non-payment or late payment of taxes.

### Key Points to Remember:
- **Timeliness**: Ensure that revised returns or appeals are filed promptly to avoid further complications.
- **Documentation**: Maintain comprehensive documentation to support the claim of a genuine error and the corrective actions taken.
- **Communication**: Keep clear communication with the Income Tax Department and follow up regularly to ensure your submissions are processed.

Taking these steps will help in correcting the error, addressing the demand raised by the department, and mitigating any further issues arising from the mistake.