I have received a notice from department stating that there is defect in the ITR filed for AY16-17.
Assessee has filed ITR-4 being a tuition teacher. She does not maintain regular books of accounts, so presumed income is considered.
In the return filed, I have shown gross profit and net profit, where regular books of accounts does not maintained by the assessee, but nothing is shown in balance sheet pt no 6 i.e no account case section, where columns are: sundry debtors, sundry creditors and cash balance amount
the defect in the notice is taxpayer having income under PGBP but has not filled B/S and P/L account as per sec 139(9)(f) r.w.s 44AA
For last AY also, I have filed the return on similar lines but no objection came in that year.
Please suggest what has to be done. Whether I need to agree with defect and file the rectified return, then what will be the rectification?
or I need to disagree with the defect, then what reason has to be stated in the remarks column
Please reply....it's urgent
Thanks in advance.
".......the defect in the notice is taxpayer having income under PGBP but has not filled B/S and P/L account as per sec 139(9)(f) r.w.s 44AA"
The defect is clearly mention in the notice that for the assessee Books of accounts are to be maintained as per section 44AA of IT act, 1961.
Such sort of mistakes were not noticed till the year, but these year all such defects are not accepted by department.
Prepare P & L acc and BS, may be tantative but as per submited gross profit and net profit.
AGREE WITH THE DEFECT and submit revised return with P&L & BS.
Good luck.
CAclubindia
