Received Notice under section 139(9)

[Mitalishah]

Hi!

I got notice under section 139(9) of defective return and I am asked to file the rectified return within 15 days.

Actually, the return ITR4 which was filed originally had some mistakes.
I was discussing the mistakes with my CA and we were about to rectify it,
I got the notice.

As I traded in Nifty futures last year and made a small loss of Rs. 300/-,
the employee of my CA by mistake, entered the contract value of Nifty futures which is approx Rs. 2032900 in the 8th column of long term capital gain which is "Full value of consideration" (in ITR4).
Beneath that there is a column of "cost of acquisition with indextion", he put Rs. 2033200 there and the balance was Rs. 300 (Page 22 of ITR-4).
Don't understand how he put all these details.
My CA also pointed out that it was a mistake and were about to rectify it and we got the notice.

I think ideally the contract value should not be entered in ITR-4.
It's only absolute sum of profits and loss which is turnover.

Now the questions are:-
1) When I file rectified return with response to the notice, can I rectify the mistakes which were there in the original ITR4 ?
2) If there is a discrepancy between the two ITRs, won't it create problem ?
as in my case it's the contract value of approx 20 lakhs which should not have been entered and it was entered in long term capital gain column.
If I remove it in the revised return, will it create any further problem?

What to do?

Thanks,
Mitali Shah

 

[XRAY27]

Hi!

I got notice under section 139(9) of defective return and I am asked to file the rectified return within 15 days.

Actually, the return ITR4 which was filed originally had some mistakes.
I was discussing the mistakes with my CA and we were about to rectify it,
I got the notice.

As I traded in Nifty futures last year and made a small loss of Rs. 300/-,
the employee of my CA by mistake, entered the contract value of Nifty futures which is approx Rs. 2032900 in the 8th column of long term capital gain which is "Full value of consideration" (in ITR4).
Beneath that there is a column of "cost of acquisition with indextion", he put Rs. 2033200 there and the balance was Rs. 300 (Page 22 of ITR-4).
Don't understand how he put all these details.
My CA also pointed out that it was a mistake and were about to rectify it and we got the notice.

I think ideally the contract value should not be entered in ITR-4.
It's only absolute sum of profits and loss which is turnover.

Now the questions are:-
1) When I file rectified return with response to the notice, can I rectify the mistakes which were there in the original ITR4 ?
2) If there is a discrepancy between the two ITRs, won't it create problem ?
as in my case it's the contract value of approx 20 lakhs which should not have been entered and it was entered in long term capital gain column.
If I remove it in the revised return, will it create any further problem?

What to do?

Thanks,
Mitali Shah

I think your CA don't know how to handle Trading of derivatives and share trading..

As you have received notice U/S 139(9) which means your return is treated as defective so revise the return and problem will be solved

First derivatives trading comes under business income.. cannot be a capital gains/loss

 

[lemondew]

Many CAs dont know how to handle derivatives but still they dont say no and ask u to find someone else.
I know there are some CAs here who know how to do it.

If not satisfied with ur ca then. You can check it with canikhil here. Xray himself is a ca but we know him as a trader. Dont know whether he files returns

I think your CA don't know how to handle Trading of derivatives and share trading..

As you have received notice U/S 139(9) which means your return is treated as defective so revise the return and problem will be solved

First derivatives trading comes under business income.. cannot be a capital gains/loss

 

[XRAY27]

Many CAs dont know how to handle derivatives but still they dont say no and ask u to find someone else.
I know there are some CAs here who know how to do it.

If not satisfied with ur ca then. You can check it with canikhil here. Xray himself is a ca but we know him as a trader. Dont know whether he files returns

Lemondew !!!! i'm trader first and CA next

CA nikhil is on this business,better he handles that.

 

[canikhil]

hi, i had received letter from IT department for Involving in trading
so i found a ca and filed IT from 2011-2014 in a single time that is June 2014,
after that i had receieved a leeter from It department, that u have to pay this much of Amount to Income tax(40000 INR), Actaully i lost some laksh during this trading period, still i dont know what to if anyone can help me out
thanks

Hey boss,

if there is a tax demand, then the error is with the computation of income itself. why can don't you share your details at [email protected]

 

[rrrajguru]

Many CAs dont know how to handle derivatives but still they dont say no and ask u to find someone else.
I know there are some CAs here who know how to do it.

If not satisfied with ur ca then. You can check it with canikhil here. Xray himself is a ca but we know him as a trader. Dont know whether he files returns

Lemondew !!!! i'm trader first and CA next

CA nikhil is on this business,better he handles that.

XRAY Bhai ke barey me ye bat to pata nehi tha. Bekar ke hum log idhar udhar bhag rahe hain.

 

[Mitalishah]

XRAY27,

Thanks for your reply.

I understand that the return is defective.
As the original return had some other mistakes/defects also so when a revised return is
filed in response to the notice, can those other mistakes of original return be rectified which were not pointed out in the notice ?

If yes, will the original return be nullified and assessing would be done through revised return?

Thanks,
Mitali Shah

 

[XRAY27]

XRAY27,

Thanks for your reply.

I understand that the return is defective.
As the original return had some other mistakes/defects also so when a revised return is
filed in response to the notice, can those other mistakes of original return be rectified which were not pointed out in the notice ?

If yes, will the original return be nullified and assessing would be done through revised return?

Thanks,
Mitali Shah

Yes !!!! original return is nullified and new revised return will be taken into account !!!

 

[ashu1234]

hi, i had received letter from IT department for Involving in trading
so i found a ca and filed IT from 2011-2014 in a single time that is June 2014,
after that i had receieved a leeter from It department, that u have to pay this much of Amount to Income tax(40000 INR), Actaully i lost some laksh during this trading period, still i dont know what to if anyone can help me out
thanks

I guess you might have incurred loss in one year and profit in another year or so, but overall loss. Now tax department will only look for any income generated in any particular year, and if you by chance earned something in a year it is indeed taxable.....how much did you earned buddy in a single year more than 5 lacs??. I'm just making an assumption as this thing indeed happened with one of my acquaintance. If its something different then onus is on you to give clarification.