Though, IT department has not come with the ITRs for Assessment Year 2015-16, we have geared and started preparation for filing..

In practice in spite of reminders, many of our clients do not file Return of Income within the time specified u/s 139 (1) or before the end of relevant assessment year.

Provisions of section 139 (4) allow to file Return of Income, before the expiry of one year from the end of the relevant assessment year.

Considering the provisions of section 139 (1)/139 (4), we can rule out the following possibilities of filing of Return of Income.

Situation/s. Section Filing time Remarks Remarks

 

1 139 (1) Within due date of filing

 

 

It is always better to file Return of Income in time to avoid litigations. Prosecution u/s 276CC cannot be initiated
2 139 (1) Within the time extended by CBDT

(For AY 2015-16 time extended by CBDT till 31st August 2015)

Filing of return within the extended time is a return filed as good as within the time frame u/s 139 (1) i.e. all the advantages are available such as revision u/s 139 (5). C/f of losses etc. Prosecution u/s 276CC cannot be initiated
3 139 (4) After the due date u/s 139 (1) but before the end of the relevant assessment year Advantages not available i.e. C/f of losses not allowed (except depreciation loss). Revision not allowed. However this return is not barred by time and allowed as such. Prosecution u/s 276CC cannot be initiated
4 139 (4) After the end of the a relevant assessment year, but within the expiry of one year from the end of relevant assessment year Section 139 (4) allows to file before the expiry of one year from the end of relevant assessment year.

(For Example for AY. 2015-16 Return can be filed up to 31st March 2017 belatedly)

Prosecution can be initiated U/s 276CC
5 No filing of return allowed after the time specified in 4) above. Return of Income not allowed to be filed after the expiry of one year from the end assessment year i.e. it is barred by time. (For example For AY. 2015-16, Return of Income cannot be filed after 31st March 2017. After 31st March 2017 the return will be time barred)

 

In such case Return can be only upon notice issued u/s 142 (1).Further assessments in such cases are done u/s. 144. (Best Judgment Assessment)

 

Prosecution can be initiated U/s 276CC

The major cause of concern is prosecution for late filers covered in situation 4 & 5 above. As per the provisions of section 276CC, a person can be placed behind the bars for a term ranging from two months to seven years.

One may ask a question that, we have been filing late returns since a long, even after the end of the relevant assessment year. Why this time we should be more concerned about this?

The answer to above is that, now CBDT has decided to initiate prosecution (Chapter XXII provisions) against the big assessee to create deterrent effect amongst them so as to increase voluntary compliance.

Further one may also ask that, provisions of section 139 (4) allow to file return belatedly.

Reply to above is, though provisions of section 139 (4) allow filling of Return of Income even after the end of the relevant assessment year (please ref situation 4 above). However section 276CC does not grant any immunity to such late filers covered in situation 4 and non-filers covered in 5 above. (Please visit the section 276CC).

So filing Return of Income after the end of relevant assessment year though allowed u/s 134 (4) may cause prosecution u/s 276CC. To avoid this, deter your clients before Income Tax Department deter them issuing notice for prosecution.

(Compiled by CA Ramesh Nanasaheb Thete – B.Com., LLB, ACA.)

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26 responses to “Filing late Return of Income u/s 139 (4) after the end of assessment year Vs. Prosecution U/s 276CC”

  1. Akshay Jagtap says:

    Hi,
    I am a salaried employee. I want to file ITR for AY 2017-2018(FY 2016-2017)
    After the due date “31-Mar-2018”, is there any way to submit the my IT returns form.

    ‘After Due date 139(4)’. is not working.

  2. Manisha says:

    Hello,
    I am a salaried employee. I want to ask two questions:
    1. I am not able to file ITR1 of the assessment year 2017-18 till now due to some reasons. what can I do now?

    2. My assessment year 2016-17 ITR shows the message: Return invalidated.

    Please guide me in this problem.

    Regards,

  3. Sobhan says:

    Hi,
    After the due date “31-Mar-2018”, is there any way to submit the my IT returns form.

    ‘After Due date 139(4)’. is not working

    Thanks
    Sobhan Ch

    • Pranav kumar says:

      Dear Taxpayer,
      Greetings from Income Tax Department.

      It is observed that you have not filed the Income Tax Return for XXXXXXXXXX for AY 2017-18.

      Therefore, it is advised that you may ascertain your tax liability for AY 2017-18 and file your Income Tax Return (ITR) without any further delay. Last date to file your return for AY 2017-18 is 31st March 2018. However, you are advised to file the Income Tax Return much before the last date to avoid last minute rush.

      Please note that the law has changed and ITR for AY 2017-18 CANNOT be filed beyond 31st March 2018.

      Please also link your PAN with Aadhaar on the e-Filing website. If your mobile is already linked with Aadhaar, then you can e-verify your ITR using Aadhaar OTP. e-Verification is Simple and Easy, you can e-Verify your return through NetBanking / Pre-Validated Bank Account / Bank ATM / Pre-Validated Demat Account. No need to send ITR-V to CPC Bangalore if you e-verify. To know more on e-Verification click here.

      In case you require any assistance in filing of Income Tax Return, please visit http://www.incometaxindiaefiling.gov.in or call on 1800 103 0025.

      Disclaimer: Please ignore this email if you have already filed the IT Return for AY 2017-18.

      Regards,
      e-Filing Team

      This was the mail I had got in the month of March 2018. So now you can not file ITR1 for AY 2017-18.

  4. Manish gawli says:

    Sir,
    Can I file Itr for the year end 31.03.2015

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