18 February 2019
Respected Sir / Madam, an assessee has received a notice u/s-139(9) stating as follow:
Error Code 311
Error Description Taxpayer having income under the head “Profits and gains of Business or Profession” but has not filled Balance Sheet and Profit and Loss Account as required in explanation (f) under section 139(9) read with section 44AA.
Probable Resolution The Part B of the Profit and loss account and Part B of the Balance Sheet (i.e No Account Case Section) should be entered in the corrected return without which the return filed earlier is liable to be treated as invalid.
At the time of filing ITR for A.Y. 2018-19, ITR 3 has been filed instead of ITR 4 (presumptive taxation), as the assessee was facing some technical issues while uploading .xml file & loss to be c/f upto Rs.1 lakh u/h - House Property & there was no option available to c/f such loss in ITR 4. He earned 12 lakhs from consultancy income but no account maintained & has refund of Rs.1.20 lakhs.
Can he now in response to this notice, in his submission online "DISAGREE" with this & state in the reason the fact stated above & file ITR 4 as then there will be no requirement to file B/S & P &L?
Will changing ITR number be considered as Revised & will make the original ITR 3 filed as invalid & Penalty u/s-234F of Rs.10,000 will also have to be paid?
Any other alternative to get the refund back, avoid penalty u/s-234F & also c/f house property loss like filing hypothetical figures in P & L & B/S, or anything other way?
18 February 2019
But Sir, the assessee is in engineering consultancy service & a lump sum payment is made. There were no expenses incurred to earn that income & no asset & liability like a that of an firm. It's like service but TDS deducted u/s-194J. He can't file ITR 4 for presumption scheme as he has house property loss too which is required to be carried forward but no option available for that in ITR 4.
27 September 2021
You had to revise the same ITR 3 with just adding data in part B of P&L acc & that of BS. (as per suggestion given in notice). No need of changing any other data.
CAclubindia
