Response to notice under sec 143(1)(a)(iii) : Disallowance of loss claimed in ITR

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Sakshi Shah

Income Tax Account
IT Notice
Section 139(5)
Section 143(1)(a)

Notice u/s 143(1)(a)(iii) is issued when the loss has been incorrectly claimed in the ITR filed. It is sent to the registered email of the assessee. The notice mentions income head, amount reported in ITR, amount as per computation, amount of variance and description of error. The assessee must submit a response to this notice within 30 days from the date of issue.

As per the Income Tax Act, the assessee cannot carry forward the loss if he files his income tax return after the prescribed due date. When the return is filed after the due date u/s 139(1) and yet the loss has been claimed, notice u/s 143(1)(a)(iii) is issued to disallow such loss.

Example

Notice sec 143(1)(a)(iii)
Income Tax Notice for Proposed Adjustment under section 143(1)(a)
Know about the proposed Adjustments as per IT Notice
Read More
Income Tax Notice for Proposed Adjustment under section 143(1)(a)
Know about the proposed Adjustments as per IT Notice
Read More

How to respond to notice under Sec 143(1)(a)(iii)

  1. Visit Income Tax e-filing Website

    Login to your account on the income tax e-filing website. Enter user ID (PAN), Password, Captcha Code and click on ‘Login’

  2. Go to e-Proceeding > e-Proceedings or Worklist

    Click on For Your ActionResponse to notice us 143(1)(a) - Navigate to e-proceedings

  3. Click on Adjustment u/s 143(1)(a) hyperlink

    Under the column ‘Proceeding Name’Response to notice us 143(1)(a) - adjustment sec 143(1)(a)

  4. The details of notice will appear on the screen

    1. Notice or Communication Reference ID
    2. Notice Section
    3. Date of issue of notice
    4. Due date to submit response
    5. Option to submit response
    Click on Submit under the ‘Response’ column.
    Note: To view the notice, click on ‘Notice/Communication reference Id’ link.Response to notice us 143(1)(a) - Details of Notice

  5. The details of mismatch will appear on the screen.

    1. Schedule of ITR
    2. Description of the error
    3. Amount as per ITR
    4. Amount as per computation by the income tax department

  6. Submit Response

    There can be following three possibilities:

Option 1: If you Agree with mismatch in notice, file a Revised Return u/s 139(5)

Option 2: If you Disagree with Notice, submit a response to explain why you disagree with mismatch

Option 3: If you Partially Agree with mismatch in notice, file Revised Return u/s 139(5) and also submit a response

FAQs

Which losses Cannot be carried forward?

The Losses cannot be carried forward unless the return of income (for the year in which the loss is incurred) is submitted within the due date .

What is the time limit for making the assessment under section 143(1)?

​​​​​​​​Assessment under section 143(1)​ can be made within a period of one year from the end of the financial year in which the return of income is filed.

  • A HANUMANTHA CHAR says:

    I have filed a belated return for AY 2019-20 and claimed carry forward of Capital Gain Loss (Both Short term/Long term). I received notice by mail u/s 143(1)(a). When I am trying to file revised return u/s 139(5), in CFL Schedule the Loss is automatically coming and sitting under xi. I am unable to edit it, due to which it is not becoming NIL. Is there any other method to overcome this issue please.

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