Case Law Details
Samir Narain Bhojwani Vs DCIT (Bombay High Court)
Conclusion: Since the prescribed electronic return of income did not permit assessee to make his claim to set off of his profits of this year from the carried forward losses of the previous year, therefore, assessee was directed to make a representation on the above issue to the CBDT and in the meantime, assessee without prejudice to his rights and contentions would file the return of income in electronic form on the system before the last date.
Held: Assessee was obliged under Section 139D read with Rule 12 to file its return of income electronically with his digital signature. This prescribed return of income which had to be filed electronically did not permit assessee to make his claim to set off of his profits of this year from the carried forward losses of the previous year in terms of Section 72 as the prescribed electronic returns did not enable making the above claim as it was largely self populated. Resulting in excess income being declared, which would require more amount being required to be paid as tax. Thus, in view of the same, if the return of income is filed as prescribed, it would be either processed under Section 143(1) of the Act, demanding excess tax or being treated as defective (if some entries/collumns are not filled). This as last date for filing the return of income was 31st October, 2019 and unless the paper return of income was directed to be accepted, prejudice would be caused to assessee. Assessee filed a petition under Article 226 of the Constitution of India for a direction to AO and Central Board of Direct Taxes to accept assessee’s return of income for Assessment Year 2019-20 in paper form under Section 139(1). It was held that it was only when assessee was in the process of filing his return electronically that assessee realized that he was unable to make a claim of set off under Section 72, even though the claim itself was prima facie allowable. In the absence of assessee filing its return of income on or before 31st October, 2019, assessee was likely to face penal consequences. Awaiting the order of AO under Section 139(9), declaring the return as defective, would not help as the issue would continue to remain even if a fresh return was filed. The issue raised was a fundamental issue, it would be appropriate that assessee made a representation on the above issue to the CBDT, who would then consider it in the context of facts involved in the present case and issue necessary guidelines for the benefit of the entire body of assessees, if assessee was right in his claim that the prescribed return of income to be filed electronically provides prohibits an assessee from making its claim. However, in the meantime, assessee without prejudice to his rights and contentions would file the return of income in electronic form on the system before the last date. Besides, also file his return of income for the subject assessment year in paper form with the Assessing Officer before the last date. It was only after the decision of the CBDT, would the return of income of assessee for the subject assessment year be taken up for consideration.This return of income in paper form would be accepted by AO without prejudice to the Revenue’s contention that such a return could not be filed.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
1. In view of the extraordinary urgency made out by the petitioner as the last date of filing of return of income is 31st October, 2019, both the petitioner and the respondents have requested that the petition be disposed at the stage of admission. Therefore, we have taken up the petition for final disposal at the stage of admission.
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