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Demand as per 143(1)

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RAHUL B.

CHARTERED ACCOUNTANTS

92 Points Posted on 11 February 2021

Hello

Received a demand of Rs. 1.5 lacs alongwith interest u/s 143 (1) in intimation for AY 19-20

Earlier I filed ITR-4 (which was a mistake) and reported exemption u/s 10(26) - scheduled tribe exemption. However, I also showed business income and tax was calculated but I left it unattended and submitted the return. However, I should have not shown any income and just reported exemption . I confused exemption for deduction.

can anyone help with the way out ? Shall I file rectification ? If yes, then shall i submit XML or just reprocess? Or there is other way out ?

PS - Scheduled tribe exemption is applicable to the client.

Replies (2)

sabyasachi mukherjee

Profession Business

28244 Points Posted on 11 February 2021

Sec 143(1) is being invoked in the following cases:
1. where any income declared in the return of income has been wrongly computed or incorrect claim
2.disallowance of loss claimed
3. disallowance of expenditure indicated in the audit report
4. disallowance of deduction claimed under sec 10AA, 80 IA, 80 IAB,80IC OR RETURN FILED AFTER DUE DATES AS MENTIONED UNDER SEC 139(1).
4.