Case Law Details
Brief of the Case
Delhi High Court held In the case of Vinod Kumar Khatri vs. DCIT that revised return relate back to return originally filed, minus the omissions and wrong statements. Even if the revised return replaces the original return, the assessment proceedings leading up to the revised return do not get obliterated. It is never have been intended by the legislature that filing of the revised would wipe out the proceedings that have taken place till then. This would include the documents gathered or filed, and statements made, during the course of the assessment proceedings and the hearings conducted till then. Hence there was no need for the AO to issue another notice to the Assesses under Section 143(2) prior to finalising the assessment. The assessment proceedings, for all practical purposes, stood concluded by the time of filing of the revised return.
Facts of the Case
A search was conducted in the premises of the Assesses on 17th February 1992. Thereafter, on 31st August 1992 the Assesses for the first time filed his original return of income for the AY 1992-93 declaring a total income of Rs. 22,400. The said return was considered to be defective and incomplete. Since the Assesses did not respond to intimation sent to him under Section 139 (9), this return was lodged. Subsequently, in response to a notice issued under Section 142 (1), the Assesses filed his return of income on 19th January 1993 declaring again a total income of Rs. 22,400. This was accompanied by a computation of taxable income and statement of affairs as on 31st March 1992 and an income and expenditure account for the year ended on 31st March 1992.
In the assessment order, the AO noted that from the bank accounts of the Assessee’s two proprietary concerns, viz., M/s. Trinity International Corporation (TIC) and M/s. Daffodil International Corporation (DIC) in the course of the raid, an amounts of Rs. 8,94,10,873.72 was seized. The AO also set out the origin of the money into the bank accounts. The AO also noted that during the course of search on 26th February 1992 the Assesses admitted the fact of the money received in his bank accounts and further that the money belonged to him and that it represented his unaccounted income. The AO noted that the surrendered amount of Rs. 12.89 crores was corrected to Rs. 12.914 crores in the subsequent statement recorded on 26th February 1992. The assessment order also set out the statement with regard to deposit of Rs. 40,00,500 in the account of DIC by the Assesses.
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THE CAPTION SHOULD READ AS ‘MERE REVISED RETURN FILING…..’ AND NOT RILING