Answer

1. F

   Facts

   Where a tax audit is required, the audit report must be filed on the portal before the return. A return filed without it can be treated as defective. The fix is to get the audit done, have the auditor upload it, and then respond.

2. P

   Provisions and law

   • Sec 139(9), Income-tax Act 1961 (now Sec 263(7), Income-tax Act 2025)The Assessing Officer can treat a return as defective, give 15 days (or more on request) to fix it, and treat it as invalid if not fixed.
   • Sec 44AB, Income-tax Act 1961 (now Sec 63, Income-tax Act 2025)Business or profession above the prescribed limits must get accounts audited and file the report.
   • Sec 271B, Income-tax Act 1961 (now Sec 446, Income-tax Act 2025)Penalty for failing to get accounts audited or file the report.
3. A

   Analysis

   The audit report is filed by the CA and accepted by you on the portal. Once it is on record, upload the corrected return that matches the audited accounts. Late filing of the audit report can still attract a separate penalty, so the defective response does not remove that risk, but a reasonable cause can be explained if a penalty is proposed. If the audit cannot be finished in 15 days, ask for an extension early and give the expected date.

4. C

   Conclusion

   1. 1Confirm from the notice that the defect is the missing audit report.
   2. 2Appoint the auditor and finish the audit; the CA uploads the report and you accept it.
   3. 3Align the return figures with the audited accounts.
   4. 4Upload the corrected return through e-Proceedings and keep both acknowledgements.

A separate penalty for late audit can still be proposed even after you fix the defect.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.