Income Tax department recalls 'defective' notices sent to taxpayers

Taxpayers must ignore notices sent erroneously for returns, it says

The Income Tax department has withdrawn notices mistakenly issued to people who have correctly filed their returns. Such taxpayers must disregard the "erroneous" notices for Income Tax returns (ITR).

 

“This incident highlights the need for stronger system validations within the Income Tax Department to prevent unnecessary stress for taxpayers. Transparent communication and swift resolution are key to maintaining trust in the filing process,” said Amit Bansal, partner at Singhania & Co, a law firm.

 

What should taxpayers do

 

Verify notices: Taxpayers should log in to the Income Tax e-filing portal to confirm whether a defective notice still stands or has been withdrawn.

 

 

Stay organised: Retain all filing-related documents and proofs, such as ITR-V, for quick reference if discrepancies arise.

 

Consult professionals: Those unsure about their notice should not hesitate to approach a chartered accountant or a tax advisor for guidance.

 

Monitor updates: Keep an eye on official updates from the department for the latest information.

 

If you have filed a Revised ITR, there is no need to worry. Your return will be processed, especially if earlier defective notices were issued solely due to the mentioned error. Once a revised ITR is submitted under Section 139(5), it replaces the original return. Even if the defective notice was issued incorrectly, the revised return becomes the most recent and valid submission for assessment. The department will consider the latest return filed unless there are valid reasons for rejection.

 

It said: “A defective return notice was wrongly issued on 29th Nov 2024 stating that income is offered under section 44AD, even though the gross receipts are more than Rs 2 crore and the balance sheet and profit and loss account have not been filed, and books of accounts are not audited. Kindly ignore the communication in this regard. We regret the above erroneous communication, which was issued, for the return filed for the AY 2024-25. This return is now being taken up for processing. Please await the receipt of intimation for the results of processing,”.