ITR-4 Three-Year Comparative Review

Key Discrepancies & Points Requiring Attention

1. [Critical] Filing status reversed: AY24-25 & AY25-26 were both filed late as Updated Returns u/s 139(8A) (Sec 21), each attracting ₹1,000 late fee u/s 234F. AY26-27 is an original, on-time return (Sec 11) with no late fee — a positive change, but confirms two years of delayed compliance that should be reviewed for recurrence risk.
2. [Critical] Balance Sheet never reconciles: Total Assets (₹49,090 / ₹36,543 / ₹0) are never matched by an equal Total Capital & Liabilities figure (₹0 in all three years). This is a structural gap across every year's "no-account case" financial particulars.
3. [Critical] AY26-27 Balance Sheet fields entirely blank (Inventories, Cash-in-Hand, Total Assets all ₹0) despite turnover growing to ₹13.22 lakh — must be populated before final e-filing.
4. [Critical] Part B-ATI summary block missing from the AY26-27 JSON (present in both prior years) — the head-wise income summary section is absent; verify the export/utility generated a complete return.
5. [Critical] HeadOfInc.IncomeFromBP shows ₹0 in AY24-25 & AY25-26 JSONs even though real business income of ₹2,39,559 / ₹2,09,113 exists in Schedule BP — an internal data inconsistency within those two returns' summary block.
6. [Attention] PIN Code changed from 842002 (AY24-25 & 25-26) to 842001 (AY26-27) — confirm the correct current PIN with the client.
7. [Attention] Business description altered & misspelled in AY26-27 ("RETURENT FOR DINNER/LUNCH" vs "NEW BANARSI HOTEL" in prior years) — correct spelling and align description before filing.
8. [Attention] Verification block in AY26-27 omits the Assessee's PAN field that was present in both prior years.
9. [Observation] Rounding of Total Income differs: Gross Total Income vs Total Income gap is ₹3 in AY24-25 & AY25-26 but ₹5 in AY26-27 — inconsistent rounding rule applied.
10. [Observation] Savings Bank interest is itemised separately in AY24-25 (₹18,651) and AY26-27 (₹8,708) but clubbed into "Other" income in AY25-26 — inconsistent income classification.
11. [Observation] Presumptive income as % of turnover swings non-linearly — 23.15% → 18.54% → 26.94% — all well above the statutory 6%/8% floor (a permitted voluntary higher declaration), but the year-on-year volatility should be explainable/documented for scrutiny-readiness.
12. [Observation] Business income fell 12.71% in FY24-25 despite turnover rising 8.96% that year, then surged 70.40% in FY25-26 while turnover rose only 17.32% — the profit-to-turnover relationship is inconsistent between the two year-pairs.
13. [Observation] Cash component of turnover remains consistently high — 69.6% / 63.5% / 65.4% of gross turnover across all three years — a recurring cash-intensive pattern worth flagging for scrutiny-risk awareness.
14. [Positive] No tax liability in any year — Rebate u/s 87A fully absorbs the computed tax each year (Total Income has stayed within the rebate threshold), and TDS/Interest u/s 234A-C is Nil throughout.
15. [Positive] Compliance trend improving: AY26-27 filed on time with no late fee, versus two consecutive years of belated/updated filings.