Case Law Details
Shri Mahesh H. Hinduja Vs. ITO (ITAT Mumbai)
As could be seen from the facts on record, in the original return of income the assessee had neither declared the long term capital gain nor has claimed deduction under section 54 of the Act. Further, the rental income offered in the original return of income was lesser than the amount actually received by the assessee. Therefore, on 20th October 2012, the assessee filed a revised return of income within the time prescribed under section 139(5) of the Act offering rental income of Rs. 6,24,050. Further, the assessee also declared net long term capital gain of Rs. 49,96,681, though, it was claimed as deduction under section 54 of the Act towards investment in a new residential house. As could be seen from the assessment order itself, though, the Assessing Officer has accepted the rental income as well as long term capital gain offered in the revised return of income, however, he has denied assessee’s claim of deduction under section 54 of the Act by stating that the revised return of income filed by the assessee is invalid since it was filed after issuance of notice under section 143(2) of the Act. Thus, as could be seen, the Assessing Officer has not entirely rejected the revised return of income filed by the assessee. When it comes to the income offered in the revised return of income, he has accepted it, whereas, when it comes to deduction claimed under section 54 of the Act, the Assessing Officer conveniently rejects the revised return of income filed by the assessee. Thus, the Assessing Officer has adopted a very selective approach in respect of the revised return of income filed by the assessee. A careful reading of the provisions contained under section 139(5) of the Act will make it clear that if an assessee discovers any omission or wrong statement in the original return of income he can file a revised return of income at any time before the expiry of one year from the end of the relevant assessment year or before completion of the assessment whichever is earlier. There is no dispute to the fact that both the conditions imposed under section 139(5) of the Act stood complied in case of revised return of income filed by the assessee.
There is no bar / restriction in the provisions of section 139(5) of the Act that the assessee cannot file a revised return of income after issuance of notice under section 143(2) of the Act. It is trite law, the assessee can file a revised return of income even in course of the assessment proceedings, provided, the time limit prescribed under section 139(5) of the Act is available. That being the case, the revised return of income filed by the assessee under section 139(5) of the Act cannot be held as invalid.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
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