September 2023
Against a defect notice issued under section 139(9), an appeal lies to CIT(A) under section 246A(1)(a) as such notice has the effect of creating liability under the Act, which the assessee denies or would jeopardize refund.
27. V K Patel Securities Pvt Ltd vs. ADIT
ITA No. 1009/Mum./2023
A.Y.: 2019–20
Date of Order: 20th June, 2023
Sections: 139(9)
Against a defect notice issued under section 139(9), an appeal lies to CIT(A) under section 246A(1)(a) as such notice has the effect of creating liability under the Act, which the assessee denies or would jeopardize refund.
FACTSThe assessee, a stock broker, filed its return of income for the year under consideration on 21st September, 2019 declaring a total income of Rs. 3,82,74,330. The CPC issued a defect notice u/s 139(9) of the Act with error “Tax Payer has shown gross receipts or income under the head ‘Profits and Gains of Business or Profession’ more than Rs. 1 crore, however, the books of accounts have not been audited.”
The CPC did not process the return of income filed by the assessee.
Aggrieved by the above said defect notice issued by CPC, the assessee filed “e-Nivaran Grievance”, against which response communication was issued on 16th February, 2021, invalidating the return filed by the assessee.
Aggrieved, the assessee challenged the said defect notice, by filing an appeal before the CIT(A), who dismissed the appeal of the assessee holding that there is no provision to file appeal against the defect notice issued under section 139(9) of the Act.
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