Assessing Officer Cannot Consider Assessee's Claim In Time-Barred Revised Return U/S 139(5) Of Income Tax Act: Supreme Court
The Supreme Court observed that the assessing officer has no jurisdiction to consider the claim made by the assessee in the revised return filed after the time prescribed by Section 139(5) of the Income Tax Act for filing a revised return had already expired.
The bench of Justice Abhay S Oka and Justice Augustine George Masih observed, “The assessing officer had no jurisdiction to consider the claim made by the assessee in the revised return filed after the time prescribed by Section 139(5) for filing a revised return had already expired.”
Brief Facts-
The Appellant filed an income tax return and submitted revised returns on two different occasions. After the assessing officer ignored the second revised return, the appellant filed an appeal. The Commissioner of Income Tax dismissed the appeal on the ground that the revised return was time-barred under Section 139(5). The Income Tax Appellate Tribunal partly allowed the appeal, but the Madras High Court later set aside the Tribunal’s order, stating the revised return was filed too late to be considered.
The Court mentioned the decision in Wipro Finance Ltd. v. Commissioner of Income Tax and quoted, “The assessee can file a revised return in a case where there is an omission or a wrong statement. But a revised return of income, under section 139(5) cannot be filed, to withdraw the claim and subsequently claiming the carried forward or setoff of any loss. Filing a revised return under section 139(5) of the Income-tax Act and taking a contrary stand and/or claiming the exemption, which was specifically not claimed earlier while filing the original return of income is not permissible. By filing the revised return of income, the assessee cannot be permitted to substitute the original return of income filed under section 139(1) of the Income-tax Act. Therefore, claiming benefit under section 10B(8) and furnishing the declaration as required under section 10B(8) in the revised return of income which was much after the due date of filing the original return of income under section 139(1) of the Income-tax Act, cannot mean that the assessee has complied with the condition of furnishing the declaration before the due date of filing the original return of income under section 139(1) of the Act. As observed hereinabove, for claiming the benefit under section 10B(8), both the conditions of furnishing the declaration and to file the same before the due date of filing the original return of income are mandatory in nature.”
The Court did not find any reason to interfere with the impugned judgment.
Accordingly, the Court dismissed the appeal.
