1. Check Business accounting code..... whether the same is applicable to section 44AD or 44ADA, and accordingly refill the data in latest utility downloaded from e-filing site and validate. Also verify any suggestion given in the notice if that is more suitable, in that case one can revise the return.

2. Also check the option NO against audit and maintainanca of books options in sheet GENERAL.

3. It would be more suitable to resubmit the data as per latest utility, rather than just dis-agreeing to the earlier defect.

But do reply within time period, as it is more important.   Good Luck

Originally posted by : stiplee
	As the latest Utility version is also forcing one to make some changes which are not related to the error given in the notice, should the new XML be loaded as a response to 139 notice, or a revised return? The notice contains the following warning: 1. Please ensure no other information is changed apart from those errors listed below in Part- A, incase of any other changes in data, the return of income filed by you is liable to be treated as an invalid return.

Any changes as per new utility would not be called change in data, provided the financial data like turnover, profits declared etc. remains same. And the same can be filed under section 139(9).

Received same notice with error code 180

used govt utility for filing the return and have sellected no account(u/s 44AA) and no audit(u/s 44AB) in General. The NOB selected was appropriate as per section 44AD..stated gross amount in 53(i)((a) i.e. Gross Receipts in NO Accounts Case. The profit declared is more than the 8%. To check error, have downloaded submitted itr form from site but found everything in line with what was filed. From above convo it seems like CPC have not considered amount filled in NO Accounts Cases.

So, will it be ok if disagree with the defect? and if anyone here did so whether received any response?

I have filed as professional under 44ADA using LOB code 703. I also received defective notice u/s 139(9) with error code 181. I had used the utility from Govt. web-site only.

I checked my return fully and it is all correctly entered, so there is nothing that I can correct.

 I phoned the IT helpdesk and they confirmed that code 703 is valid for section 44ADA. So there is no problem with the LOB code . The helpdesk told me that I can DISAGREE and give the reasons & details.

Accordingly I have responded with : DISAGREE and the following comments: a) Gross receipts shown under P&L  53(ii)a for professional, no accounts case.  B) Profit shown is more than 50% of gross receipts.

I have filed as professional under 44ADA using LOB code 703. I also received defective notice u/s 139(9) with error code 181.

I checked my return fully and it is all correctly entered, so there is nothing that I can correct.

 I phoned the IT helpdesk and they confirmed that code 703 is valid for section 44ADA. So there is no problem with the LOB code . The helpdesk told me that I can DISAGREE and give the reasons & details.

Accordingly I have responded with : DISAGREE and the following comments: a) Gross receipts shown under P&L  53(ii)a for professional, no accounts case.  B) Profit shown is more than 50% of gross receipts.

CAUTION: the notice clearly states that you should not change any other fields in part A other than the error listed.Or return may be treated as invalid.

I think that their software is likely having problems and version mismatches, that is why so many cases of defective returns, with nothing to correct. 

I checked all the clients ITR for which i received 139.. and all seems to be perfect with no issue (as per my knowledge)

even i think opting Disagree would be better compared to filing same X M L again...

So many assessee received 139 even though nothing is wrong then it maybe CPC software issue... this issue needs to be highlighted to the Department or CPC in order to make then aware of it... otherwise possibility of receiving 139 again for the same after opting disagree.

now a days all issues are arised via twitter so maybe even this issue should be posted to twitter account of CPC or CBDT.

And what a timing.. just before the due date of 44AB.. adding more burden of unnecessary compliance and waste of time...

I believe there are 2 root causes for these notices:

1. NOB related :  The department gave the following official response for Error Code 89:

Error code  89 : The provisions of Section 44ADA is applicable only to Professionals with nature of business codes of 601 to 607. If the Nature of Business code entered in the Return filed is not correct, the correct nature of business Code may be entered in the Sch NOB and the Corrected Return may be filed.

Based on this, I am planning to change my NOB from 703 to 607, and re-submit.

2. Errors/Bugs in Utility : The July version was giving a warning of defective return under Section 139, the moment the gross profit figure in line 53 of P&L crosses Rs, 120000 (the limit for some  No accounts cases). I had also seen this warning, but ignored it, as it did not make sense: "Please ensure that relevant fields of P&L and Balance Sheet are filled, else return may be treated as defective u/s 139(9)". So it was ignoring all the information mentioned under No Accounts in both P&L as well as Balance Sheet, at that time. Now this has been corrected, and there is no such warning.

I think the choice is between disagreeing with defect, or correcting NOB and re-submitting. I think re-submitting is better, at least it will get processed with the corrected software and will go thru after re-processing. 

Please keep updating on any new information or insights.

BUT IN MY CASE NOB IS 607 ONLY AND NO WARNING RECEIVED WHILE CREATING XML. :(

DEFECTIVE NOTICE RECIEVED FOR CASES WHERE INCOME EXCEEDED TAXABLE LIMIT. FOR BELOW TAXABLE LIMIT CASES RETURN HAS BEEN PROCESSED FOR INCOME DECLARED UNDER SECTION 44AD OR 44ADA. . I HAVE FILLED UP IN SAME FORMAT ONLY FOR BOTH CASES. THAT MEANS IF U HAVE INCOME MORE THAN TAXABLE LIMIT DEPARTMENT IS ISSUING DEFECTIVE NOTICE SINCE ACCOUNTS ARE NOT AUDITED.

YES. ITR 3 USED.  BELEOW TAXABLE LIMIT PROCESSED.

ITR 3 ONLY FILED. RETURN PROCESSED FOR BELOW TAXABLE LIMIT CASE. DEFECTIVE NOTICE RECEIVED FOR TAXABLE LIMIT CASES FOR SEC 44 AD / 44ADA. WHAT IS THE LOGIC.