subject: Cases Of Defective Income Tax Return [print this page] The return treated as defective in the following cases:
I. Information about Income Computation not furnished. Where the annexures, statements and columns in the return relating to computation of income under each head, grow total income or total income have not been duly tilled; or
II. Tax Computation Statement not attached with the Return: Where the statement showing computation of tax payable does not accompany the return; or
III. Claim Tax Credit without Attached Proof of Payment: Where the assesse claims tax credit In respect of advance tax or tax paid on self-assessment but fails to furnish the proof of payment along with the return. Similarly, where the assesse claims tax credit for tax deducted at source but fails to attach a certificate of tax deducted at source or collected at source, the return treated as defective. However, the return of income not treated as defective if the certificate under Sec. 203 or the deductor does not furnish Sec. 206 to the deductee and such certificate is produced within 2 years specified under Sec. 155(14).
IV. Assesse maintaining books of accounts but accounting statements not attached with return: Where regular books of accounts are maintained but the copies of manufacturing account trading account, profit and loss account or income and expenditure account or any other similar statements and balance sheet are not furnished along with the return; or
V. Information relevant to income computation not disclosed in a case where books of accounts not maintained: Where regular books of accounts not maintained but the return is not accompanied by a statement indicating a. the amount of turnover, gross receipt, gross profit, b. expenses, c. net profit and basis of computation, d. total debtors and creditors, e. closing stock, and j. cash balance at the end of the accounting years; or
VI. Return Not Accompanied with Audited Accounts: Where accounts have been audited but the copies of audited profit and loss account balance sheet and auditor's report including cost audit report where cost audit was conducted under Sec 233(B) have not been furnished along with the return; or
Where the accounts of a government company could not be audited because of the delay in the appointment of the auditors by the government and therefore, the return is furnished along with the provisional accounts to meet the requirements of due date under Sec. 139(1), it is to be treated as invalid return and die Assessing Officer may make best judgment assessment; or
VII. Report of Compulsory Audit Not Attached with the Return of Income: Where compulsory audit is required under Sec. 44AB but the report of such audit has not been furnished along with the return, or where the report of such audit has been furnished prior to the filing of the return but a copy of audit report under Sec. 44AB along with the proof of furnishing the report has not been filed along with the return; or
VIII. Sole Proprietor Return Not Accompanied with a Copy of his Personal Account: In the case of sole proprietary business or profession, where the copy of personal account of the proprietor does not accompany the return, or
IX. Return of Firm/AOP/BOI not Accompanied with a Copy of the Personal Account of its Partners/ Members: Where a firm or AOP or BOI submits its return but individual personal account of the partner or member is not attached with that return, it is treated as defective return; or
Return of a Partner of Firm or a Member of AOP/BOl Not Accompanied with a Copy of his Account in the Finn/AOP/BOI: Where a partner of a firm or member of an Association of person or Body of Individuals submit his income tax return without a copy of his account with said firm/AOI/BOI such return is treated as defective.
