Dear Lakshmikanth,
An item to be classified as "Prior Period Item(PPI)" as defined in AS-5 should have "error/ommission" aasociated with it pertainiing to previous year(s).
The fact that now the income is reversed is not conclusive to decide whether it is a PPI or not, if there was an error/omission during the previous year in recognizing this income, then "yes" it is a PPI & if reversal is due to certain factors which have arise during the current FY itself then it is not a "PPI"
Further, TDS return is to be filed by the deductor & not the payee, I think u mean "Income Tax Return", now no need to revise it since the tax has been deposited & the sasme has also been claimed in the return..the amount of TDS has to be refunded to the deductor.