ITR 3 ONLY USED

If I am just Changing the the NOB from (709 to 607), should file as revised return or as a response to 139(9)? 

Audit requirement arises only of business turnover exceed 1 crore, prof gross receipts exceed Rs 50 lakh, or one claims expenses more than those allowed under presumptive tax (e.g. claiming less than 50 percent as profit under 44 ADA). So I am doubtful if the notices are related to Audit.

Re: Not getting any warning while saving XML (per post of Mr Surana), I am able to get it even now with the June version of dept ITR 3 Utility, which I had saved. Kindly verify it once again, in case you have that version. The warning comes only if Gross Profit is more than 120,000. It has been corrected in Oct 26 version, though.

As per the IT act, Within these limits we are not  required to maintain books of account. So what is to be audited if there are no books of account? I agree with you, the errors cannot be connected to Audit.

My error code of 181 did not refer to LOB at all, only to P&L account.( Error 89 is different). And the help desk confirmed that LOB used by me, 703, was valid for 44ADA. So I really cannot correct anything !.Anyway they have warned not to correct anything else in Part A or it may get invalidated.

I have "DISAGREED"" and given reasons. There is nothing else that I can logically do at this stage. 

Though I believe that this is a processing mess at their end and the tax payers are suffering.

i agree...

infact i agree to both ways now :(

1. simply disagree.. since as per the ITR nothing is wrong

2. Simple agree and refile the latest X M L to avoid any further delay in process.

but not able to decide what should be the best course of action in interest of Client... agree or disagree :(

Few years back the rules related to 44AB was so simple and clear... but year by year it is becoming more and more complicated .. and even softwares are not able to detect this conditions..

For example: Commission income cant go for 44AD but the ulitity doesnt detect this defect and if the assessee file under 44AD even when he has commission income then too the return is processed without any defect.

Block of 5 years condition .. so for that one need to check previous years filed data to check if what the assessee can go for... and when the assessee decide with the current provisions for next 5 years and during that a new provisions comes effecting the assessees decision :)

if any circular for guideliness is issued from department to this issue then it can be best helpful for all of us.

I am using Spectrum Software.. and never seen any warning for GP more then 120000/- ... :(

though the detail are proper and correct... Gross Receipt , Gross Profit, Expenses and NP entered properly...

Has anyone got any opinion of Department with regard to this issue?
or any guidelines from department for this particular issue ?

Deleted duplicate post

not able to make the mind for this issue.... if no clarification received till the due date then will file latest X M L without changing anything...

hoping some big CA or group can approach the department or ICAI or CDBT to get some clarification on this issue... but this issue is too small for big people :(

so wait and watch till the end...

@ Jignesh Jain: 

The link will be active only after about 5 working days under compliance tab.

You may disagree the defect provided the uploading of the audit report was completed with assessee's acceptance.

[refer: Reg-n-E-File-Process]

I too am nearly out of time, and have to respond latest by today evening.

After trying unsuccessfully to reach the call center whole of  last week, I was able to get through today. But they refused to offer any guidance at all, and just kept repeating "go thru the notice and respond". Based on this, I suggest that one should ignore whatever information they have given e.g. 703 being a valid code for 44ADA etc. The person whom I spoke to, clearly told me that they have no knowledge of tax laws, and can only guide on the processes to be followed. 

I will be meeting another filing professional (CA) today afternoon, before filing my response, and will update after doing that. Am planning to re-submit using latest utility, after udpating NOB from 703 to 607.

Thank you.

Yet another version of ITR3 Java utility has been released on IT website, on 2 November (i.e. a week after previous version of 26 October). Suggest those planning to file their responses in next few days download this version, and import their old XML into it. Am shocked by the quality of software, and also the fact that it has become almost impossible for a common person to file a return.