Please refer the order issued in the case of Kunal Structure (India) Private Limited Vs DCIT (Gujarat High Court) for the validity of issuing scrutiny notice under section 143(2) for the return filed under section 139(9). Let us analyse the provisions of the sections to understand the order.
According to the section 143(2), an Assessing officer or the prescribed income tax authority,
if he considers it is necessary or
to ensure that the assessee has not understated the income or
has not computed excessive loss or
has not under-paid the tax in any manner
can issue a notice under this section to any assessee to attend the office of the Assessing officer or to produce or cause to be produced, any evidence in support of the return filed under section 139 or the return filed in response to a notice under section 142(1) and make an assessment of the total income under section 143(3) based of the relevant records.
Time Limit for issuing notice under section 143(2)
In order to make an assessment under section 143(3), the assessing officer should issue a notice under section 143(2). However, the notice shall not be issued after the expiry of six months from the end of the financial year in which the return is furnished under section 139 or 142(1).
For example, if a company files the return for the financial year 2019-20 on 30/09/2020, i.e. in the financial year of 2020-21, then the due date for issuing notice under section 143(2) is 30/09/2021, i.e. before six months from the end date of the financial year 2020-21, 31/03/2021.
Return under section 139
Section 139 lists out the provisions related to filing of return of income, the persons to file the return, due date, etc. According to section 139(9), if the Assessing officer considers that the return of income furnished by the assessee is defective, he may intimate the defect to the assessee and give him an opportunity to rectify the defect within a period of 15 days from the date of such intimation or within the period as allowed by the Assessing Officer, at his discretion on an application in this behalf.
If the assessee fails to furnish the return by correcting the defect within 15 days or the time as allowed, the return filed shall be deemed to be invalid and the provisions of the act shall apply as if the assessee had failed to furnish the return.
Conclusion
Since the assessee as in the case, filed the return under section 139(9) by correcting the defect within the prescribed time limit as allowed by the assessing officer, the return filed before is considered as a valid return. Because, only if the assessee fails to furnish the return under section 139(9), the return filed before shall be deemed to be invalid. So, when the return filed before is considered as a valid return, the time limit for issuing notice under section 143(2) shall be based on the original return only.
Disclaimer: This article is only reading purpose, just to understand the provisions. The author bears no responsibility on decisions taken by the readers whatsoever. This article is merely for the purpose of understanding the provisions of the Act. E&OE.
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