Case Law Details
Qayum Ismail Mukaddam Vs CIT (ITAT Mumbai)
The central issue in the case revolves around the retrospective applicability of changes introduced to sections 139(4) & 139(5) by the Finance Act 2016 in relation to the revision of a belated Income Tax Return (ITR).
Analysis : Mukaddam filed a belated return of income, which he later revised to declare a lesser income. The Assessing Officer (AO), however, dismissed the revised return on the basis that it was invalid as the original return was belated. Mukaddam contended that the revision was due to a clerical error he made when filing the original return.
The CIT upheld the AO’s decision, asserting that belated returns for the Assessment Year (AY) 2014-15 could not be revised according to the changes in the Finance Act, 2016. These changes, allowing the revision of belated returns, were only relevant from AY 2017-18 onwards.
The ITAT Mumbai agreed with the CIT’s decision, stating that the changes in sections 139(4) and 139(5) introduced by the Finance Act, 2016 were not intended to apply retrospectively. Thus, they found no merit in Mukaddam’s appeal.
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