Tripura State Electricity Corporation Limited Vs PCIT (Tripura High Court)
In this case, the Tripura High Court considered an appeal filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal (ITAT) relating to the assessment year 2013–2014.
The appellant, engaged in the business of sale and distribution of electricity, had filed its original return of income on 26.09.2013 declaring a loss. The case was selected for scrutiny and notice under Section 143(2) was issued on 04.09.2014. During the pendency of the assessment proceedings, the appellant filed a revised return on 23.02.2015 under Section 139(5), within the prescribed time, based on audit objections.
Subsequently, the Assessing Officer completed the assessment on 18.03.2016 by disallowing certain deductions and computing income without taking into account the revised return.
On appeal, the Commissioner of Income Tax (Appeals) held that once a valid revised return is filed within time, it substitutes and obliterates the original return. Therefore, the Assessing Officer could not rely on the original return and was required to consider the revised return and issue notice under Section 143(2) accordingly. Since the assessment order was silent on the revised return, it was held unsustainable and annulled.
