Thursday, 11 May 2017

Defective or Incomplete Return [Section 139(9)]

A return of income filed by a taxpayer / assessee for the relevant financial year is said to be defective if –

1.  Such return has not been duly filed: All items in Income Tax return form must be filled in the manner indicated in the return form. If any schedule of the relevant form is not applicable in the case of an assessee, it should be scored across as “----NA----“. If any item is inapplicable, one should write “NA” against it. One should write “NIL” to denote nil figure. No column or row should be left blank. Otherwise the return may be liable to be held defective or even invalid.

2.   Annexures, statements, accounts, etc.: A few statements, reports, proof of pre-paid taxes, accounts, etc.., should accompany the return of income, otherwise the return will become defective. However, it is not possible to attach any certificate or report or computation or final accounts with new income tax returns forms. Likewise, it is not possible to attach proof of pre-paid taxes (like tax deducted / collected at source, advance payment of tax, self – assessment tax). The assessee should, therefore, retain these certificates, report, computation, final accounts, and proof of prepaid taxes with him. These may be furnished whenever the Assessing Officer wants to examine them in assessment proceedings or otherwise. Return of income will not become defective of non – fulfilment of this requirement.

The assessing officer may give the assessee an opportunity to rectify the defect within a period of 15 days from the date of such intimation. This time – limit may be extended by the Assessing Officer on an application by the assessee.

If, however, an application filed by an assessee for extension time is not disposed of (i.e. no action is taken and the Assessing Officer remains silent), then only conclusion is that time asked for by the assessee has been granted by the Assessing Officer.

If the defect is not rectified by the assessee within the period of 15 days or such further extended period, then the Assessing Officer shall treat the return as an invalid return and other provisions of the Income-Tax Act would apply as if the assessee had failed to furnish the return.

Where the assessee rectifies defect after the expiry of the period of 15 days (or the further extended period), but before assessment is made, the Assessing Officer may condone the delay and treat the return as a valid return.

Have a great day ahead!

No comments:

Post a Comment