Case Law Details
Anagha Vijay Deshmukh Vs DCIT, CPC (ITAT Pune)
ITAT Pune held that once a revised return is filed within the time permitted u/s.139(5), it substitutes the original return in all respects. Accordingly, claim of enhanced amount of carry forward of loss vide revised return is allowable.
Facts- The assessee is a non-resident staying in Edina, USA. She filed the return electronically on 31-08-2015 declaring total income at Rs.1,15,500/- earned from rent and interest on fixed deposits etc., after claiming carry forward of loss under the head `Capital gains’ to the tune of Rs.43,221/-. The assessee filed a revised return on 04-07-2016 claiming carry forward of such loss for a sum of Rs.6,14,456/-. The latter return was processed u/s.143(1) of the Act disallowing carry forward of long term capital loss of Rs.6,14,456/-. A rectification petition was filed on 04-12-2018, which came to be dismissed by means of an order u/s.154 passed on 17-12-2018.
The assessee carried the matter before the ld. CIT(A). The ld. CIT(A) did not countenance the assessee’s claim by holding that the original return filed by the assessee was invalid because of non-receipt of acknowledgement by the CPC. Hence, the so-called revised return was, in fact, a belated return filed beyond the time u/s.139(1) r.w.s.139(3). Ex consequenti, the claim of carry forward of loss under the head ‘Capital gains’ was not admissible. Aggrieved thereby, the assessee has come up in appeal before the Tribunal.
Conclusion- Once a revised return is filed within the time permitted u/s.139(5), it substitutes the original return in all respects. It is construed as if the particulars furnished in the revised return were the particulars furnished in the original return and that such return was filed on the date when the original return was filed. If that is the position, we fail to comprehend as to how the enhanced amount of carry forward of loss of Rs.6,14,456/- claimed in the revised return [filed after the due date u/s.139(1) but within the time prescribed u/s.139(5)] can be restricted only to the extent of loss of Rs.43,221/- [claimed in the original return u/s 139(1)]. Since the assessee furnished the revised return within the stipulated period claiming loss at a higher level, it is this enhanced amount of loss which will be considered for carry forward to the next year(s) as the original return has been held to be validly filed and consequently the revised return will substitute the original return in all respects including the aspect of date of filing also. We, therefore, overturn the impugned order pro tanto and direct to allow carry forward of loss of Rs.6,14,456/-.
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