Defective Return [Section 139 (9)]

Under the section 139(9) Assessing Officer has power to call upon the assessee to rectify a defective return.  For the purpose of this subsection, return of income shall be regarded as defective unless all the following conditions are satisfied.

• Annexure, Statements and Columns:  The annexure, statements and columns in the return of income relating to computation of income chargeable under each head of income, computation of gross total income and total income have been filled in.
• Return of income to the accompanied by statements:  The return of income is accompanied by the following:
  • A statement showing computation of the tax payable on the basis of the return accompanied by the report of audit obtained under Section 44AB.
  • Proof regarding tax deducted:  The proof regarding the tax, if any, claimed to have been deducted at source and the advance tax and tax on self-assessment, if any, claimed to have been paid.
    However, w.e.f. 1-6-2002 where the return is not accompanied by proof of the tax, if any, claimed to have been deducted at source, the return of income shall not be regarded as defective if: a certificate for tax deducted at source was not furnished to the person furnishing his return.  Such certificate is to be produced within a period of 2 years from the end of the year in which such income is assessable.
  • Proof of compulsory deposit:  The proof of the amount of compulsory deposit, if any, claimed to have been under the compulsory deposit scheme.
  • Copies of different accounts:  Where regular books are maintained by an assessee, copies of manufacturing, trading, profit and loss account and balance sheet.  In the case of proprietary business or profession, the personal account of the proprietor; in the case of firm, association of persons, body of individuals, and personal account of partners or members.
  • Auditor’s report:  Where the accounts of an assessee have been audited, copies of the audited profit and loss account and balance sheet ad copy of the auditor’s report.
• Discretion of Assessing Officer:  Where the assessing officer considers that the return of income furnished by the assessee is defective he is given the discretion to intimate the defect to the assessee and give him an opportunity to rectify the defect within a period of fifteen days from the date of intimation or within such further extended time as the Assessing Officer may allow.  If the defect is not rectified within the period of fifteen days or such further extended period then, the Income tax Act shall apply as if the assessee has failed to furnish the return.