Tax query

[font=""trebuchet ms""]An assessee who is required to file a return of income is entitled to revise the return of income originally filed by him to make such amendments, additions or changes as may be found necessary by him. Such a revised return may be filed by the assessee at any time before the assessment is made. There is no limit under the income tax Act in respect of the number of time for which the return of income may be revised by the assessee. However, if a person deliberately files a false return he will be liable to be imprisoned under section 277 and the offence will not be condoned by filing a revised return.[/font]

I dont find that there would be any embargo in filing a revised return from Mumbai.

Section 139 of the Income Tax Act deals with return of Income and I am reproducing the same for better appreciation.

[font=""trebuchet ms""]Section 139 - Return of Income

(1) Every person, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax, shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year in the prescribed form 1416 and verified in the prescribed manner and setting forth such other particulars as may be prescribed :

Provided that a person, not furnishing return under this sub-section and residing in such area as may be specified by the Board in this behalf by a notification in the Official Gazette, and who at any time during the previous year fulfils any one of the following conditions, namely :-

(i) Is in occupation of an immovable property exceeding a specified floor area, whether by way of ownership, tenancy or otherwise, as may be specified by the Board in this behalf; or

(ii) Is the owner or the lessee of motor vehicle other than a two- wheeled motor vehicle, whether having any detachable side car having extra wheel attached to such two-wheeled motor vehicle or not; or

(iii) Is a subscriber to a telephone; or

(iv) Has incurred expenditure for himself or any other person on travel to any foreign country,

(v) Is the holder of the credit card, not being an ""Add-on"" card, issued by any bank or institution; or

(vi) Is a member of a club where entrace fee charged is twenty-five thousand rupees or more : shall furnish a return, of his income during the previous year, on or before the due date in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed. Provided further that the Central Government may, by notification in the Official Gazette, specify class or classes of persons to whom the provisions of the first proviso shall not apply,

Explanation 1 : In this sub-section, ""due date"" means -

(a) Where the assessee is a company, the 30th day of November of the assessment year;

(b) Where the assessee is a person, other than a company, -

(i) In a case where the accounts of the assessee are required under this Act or any other law to be audited or where the report of an accountant is required to be furnished under section 80HHC or section 80HHD or where the prescribed certificate is required to be furnished under section 80R or section 80RR or sub-section (1) of section 80RRA, or in the case of a co-operative society or in the case of a working partner of a firm whose accounts are required under this Act or any other law to be audited, the 31st day of October of the assessment year;

(ii) In a case where the total income referred to in this sub-section includes any income from business or profession, not being a case falling under sub-clause (i), the 31st day of August of the assessment year;

(iii) In any other case, the 30th day of June of the assessment year.

Explanation 2 : For the purposes of sub-clause (i) of clause (b) of Explanation 1, the expression ""working partner"" shall have the meaning assigned to it in Explanation 4 of clause (b) of section 40.

Explanation 3 : For the purposes of this sub-section, the expression ""motor vehicle"" shall have the meaning assigned to it in clause (28) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988).

Explanation 4 : For the purposes of this sub-section, the expression ""travel to any foreign country"" does not include travel to the neighbouring countries or to such places of pilgrimage as the Board may specify in this behalf by notification in the Official Gazette.

(3) If any person, who has sustained a loss in any previous year under the head ""Profits and gains of business or profession"" or under the head ""Capital gains"" and claims that the loss or any part thereof should be carried forward under sub-section (1) of section 72 or sub-section (2) of section 73, or sub-section (1) or sub-section (3) of section 74 , or sub-section (3) of section 74A, he may furnish, within the time allowed under sub-section (1), a return of loss in the prescribed form and verified in the prescribed manner and containing such other particulars as may be prescribed, 1429 and all the provisions of this Act shall apply as if it were a return under sub-section (1).

(4) Any person who has not furnished a return within the time allowed to him under sub-section (1), or within the time allowed under a notice issued under sub-section (1) of section 142, may furnish the return for any previous year at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier :

Provided that where the return relates to a previous year relevant to the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year, the reference to one year aforesaid shall be construed as reference to two years from the end of the relevant assessment year.

(4A) Every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes, or of income being voluntary contributions referred to in sub-clause (iia) of clause (24) of section 2, shall, if the total income in respect of which he is assessable as a representative assessee (the total income for this purpose being computed under this Act without giving effect to the provisions of sections 11 and 12) exceeds the maximum amount which is not chargeable to income-tax, furnish a return of such income of the previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed 1432 and all the provisions of this Act shall, so far as may be, apply as if it were a return required to be furnished under sub-section (1).

(4B) The chief executive officer (whether such chief executive officer is known as secretary or by any other designation) of every political party shall, if the total income in respect of which the political party is assessable (the total income for this purpose being computed under this Act without giving effect to the provisions of section 13A) exceeds the maximum amount which is not chargeable to income-tax, furnish a return of such income of the previous year in the prescribed form and verified in the prescribed 1433a manner and setting forth such other particulars as may be prescribed and all the provisions of this Act, shall, so far as may be, apply as if it were a return required to be furnished under sub-section (1).

(5) If any person, having furnished a return under sub-section (1), or in pursuance of a notice issued under sub-section (1) of section 142, discovers any omission or any wrong statement therein, he may furnish a revised return at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier :

Provided that where the return relates to the previous year relevant to the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year, the reference to one year aforesaid shall be construed as a reference to two years from the end of the relevant assessment year.

(6) The prescribed form of the returns referred to in sub-sections (1) and (3) of this section, and in clause (i) of sub-section (1) of section 142 shall, in such cases as may be prescribed, require the assessee to furnish the particulars of income exempt from tax, assets of the prescribed nature value and belonging to him, his bank account and credit card held by him, expenditure exceeding the prescribed limits incurred by him under prescribed heads and such other outgoings as may be prescribed.

(6A) Without prejudice to the provisions of sub-section (6), the prescribed form of the returns referred to in this section, and in clause (i) of sub-section (1) of section 142 shall, in the case of an assessee engaged in any business or profession, also require him to furnish the report of any audit referred to in section 44AB, or, where the report has been furnished prior to the furnishing of the return, a copy of such report together with proof of furnishing the report, the particulars of the location and style of the principal place where he carries on the business or profession and all the branches thereof, the names and addresses of his partners, if any, in such business or profession and, if he is a member of an association or body of individuals, the names of the other members of the association or the body of individuals and the extent of the share of the assessee and the shares of all such partners or the members, as the case may be, in the profits of the business or profession and any branches thereof.

(8)(a) Where the return under sub-section (1) or sub-section (2) or sub-section (4) for an assessment year is furnished after the specified date, or is not furnished, then [whether or not the Assessing Officer has extended the date for furnishing the return under sub-section (1) or sub-section (2)], the assessee shall be liable to pay simple interest at fifteen per cent per annum, reckoned 1443 from the day immediately following the specified date to the date of the furnishing of the return or, where no return has been furnished, the date of completion of the assessment under section 144, on the amount of the tax payable on the total income as determined on regular assessment, as reduced by the advance tax, if any, paid, and any tax deducted at source : Provided that the Assessing Officer may, in such cases and under such circumstances as may be prescribed, 1444 reduce or waive the interest payable by any assessee under this sub-section.

Explanation 1 : For the purposes of this sub-section, ""specified date"", in relation to a return for an assessment year, means, - (a) In the case of every assessee whose total income, or the total income of any person in respect of which he is assessable under this Act, includes any income from business or profession, the date of the expiry of four months from the end of the previous year or where there is more than one previous year, from the end of the previous year which expired last before the commencement of the assessment year, or the 30th day of June of the assessment year, whichever is later;

(b) In the case of every other assessee, the 30th day of June of the assessment year. Explanation 2 : Where, in relation to an assessment year, an assessment is made for the first time under section 147, the assessment so made shall be regarded as a regular assessment for the purposes of this sub-section.

(b) Where as a result of an order under section 147 or section 154 or section 155 or section 250 or section 254 or section 260 or section 262 or section 263 or section 264 or an order of the Settlement Commission under sub-section (4) of section 245D, the amount of tax on which interest was payable under this sub-section has been increased or reduced, as the case may be, the interest shall be increased or reduced accordingly, and -

(i) in a case where the interest is increased, the Assessing Officer shall serve on the assessee, a notice of demand in the prescribed form specifying the sum payable, and such notice of demand shall be deemed to be a notice under section 156 and the provisions of this Act shall apply accordingly;

(ii) In a case where the interest is reduced, the excess interest paid, if any, shall be refunded.

(c) The provisions of this sub-section shall apply in respect of the assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year, and references therein to the other provisions of this Act shall be construed as references to the said provisions as they were applicable to the relevant assessment year.

(9) Where 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 fifteen days from the date of such intimation or within such further period which, on an application made in this behalf, the Assessing Officer may, in his discretion, allow; and if the defect is not rectified within the said period of fifteen days or, as the case may be, the further period so allowed, then, notwithstanding anything contained in any other provision of this Act, the return shall be treated as an invalid return and the provisions of this Act shall apply as if the assessee had failed to furnish the return :

Provided that where the assessee rectifies the defect after the expiry of the said period of fifteen days or the further period allowed, but before the assessment is made, the Assessing Officer may condone the delay and treat the return as a valid return.

Explanation : For the purposes of this sub-section, a return of income shall be regarded as defective unless all the following conditions are fulfilled, namely :- (a) the annexures, statements and columns in the return of income relating to computation of income chargeable under each head of income, computation of gross total income and total income have been duly filled in;

(b) The return is accompanied by a statement showing the computation of the tax payable on the basis of the return;

(bb) The return is accompanied by the report of the audit referred to in section 44AB, or, where the report has been furnished prior to the furnishing of the return, by a copy of such report together with proof of furnishing the report;

(c) The return is accompanied by proof of - (i) the tax, if any, claimed to have been deducted at source and the advance tax and tax on self-assessment, if any, claimed to have been paid;

(ii) The amount of compulsory deposit, if any, claimed to have been made under the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974 (38 of 1974);

(d) Where regular books of account are maintained by the assessee the return is accompanied by copies of - (i) manufacturing account, trading account, profit and loss account or, as the case may be, income and expenditure account or any other similar account and balance sheet;

(ii) In the case of a proprietary business or profession, the personal account of the proprietor; in the case of a firm, association of persons or body of individuals, personal accounts of the partners or members; and in the case of a partner or member of a firm, association of persons or body of individuals, also his personal account in the firm, association of persons or body of individuals;

(e) Where the accounts of the assessee have been audited, the return is accompanied by copies of the audited profit and loss account and balance sheet and the auditor's report and, where an audit of cost accounts of the assessee has been conducted, under section 233B of the Companies Act, 1956 (1 of 1956), also the report under that section;

(f) Where regular books of account are not maintained by the assessee the return is accompanied by a statement indicating the amounts of turnover or, as the case may be, gross receipts, gross profit, expenses and net profit of the business or profession and the basis on which such amounts have been computed, and also disclosing the amounts of total sundry debtors, sundry creditors, stock-in-trade and cash balance as at the end of the previous year.

Regards,

Prakash

 

 
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The following case laws will throw some light on he query

Belated return cannot debar ITO from commencing reassessment proceedings - A revised return can be filed ΓÇÿat any time before the assessment is madeΓÇÖ and not thereafter; the lodging of such a belated return could not debar the ITO from commencing a proceeding for reassessment - Esthuri Aswathiah v. ITO [1961] 41 ITR 539 (SC).

Cases of concealments and false statements are not covered - Section 139(5) will apply only to cases of ΓÇÿomission or wrong statementsΓÇÖ and not to cases of ΓÇÿconcealment or false statementsΓÇÖ - CIT v. J.K.A. Subramania Chettiar [1977] 110 ITR 602 (Mad.); Addl. CIT v. Radhey Shyam [1980] 123 ITR 125 (All.).

Omission/wrong statement must be due to bona fide inadvertence or mistake - The filing of a revised return after discovery of the omission or wrong statements is not by itself sufficient to bring the revised return within the ambit of section 139(5). A further requirement is that this omission or wrong statement in the original return must be due to a bona fide inadvertence or mistake on the part of the assessee - Sunanda Ram Deka v. CIT [1994] 210 ITR 988 (Gauhati).

Prior permission is not necessary - There is no provision in the Act to seek permission to file a revised return. It is the right of the assessee to submit such a return - Waman Padmanabh Dande v. CIT [1952] 22 ITR 339 (Nag.).

Revised return cannot be filed for withdrawing claims in original return correctly made - Where there was no wrong statement in the original return, the assessee could not file a revised return to withdraw its claim, for depreciation allowance merely to claim the benefit of set off of earlier yearΓÇÖs loss - CIT v. Andhra Cotton Mills Ltd. [1996] 219 ITR 404/88 Taxman 176 (AP).

Mere application to ITO would not amount to a revised return - Where, after filing the original return and receiving notice for production of accounts, the assessment an application to the ITO was made stating that a further income was required to be added to the declared income, it would not amount to filing a revised return - Gopaldas Parshottamdas v. CIT [1941] 9 ITR 130 (All.).

Status or method of accounting cannot be changed - The facility of filing a revised return cannot be availed for change of status and change in method of accounting, since that would not amount to an ΓÇÿomissionΓÇÖ or ΓÇÿwrong statementΓÇÖ - Deepnarain Nagu & Co. v. CIT [1986] 157 ITR 37 (MP).

Section 139(5) is applicable to a return filed under section 139(3) - CIT v. Periyar District Co-operative Milk Producers Union Ltd. [2004] 137 Taxman 364/266 ITR 705 (Mad.).

Voluntary return under section 139(4) cannot be revised - Section 139(5) permits a later or revised return to be filed only when the return was filed under section 139(1). Filing of revised return is not contemplated under section 139(5) in cases governed by section 139(4) - Kumar Jagdish Chandra Sinha v. CIT [1996] 86 Taxman 122 (SC)/Dr. (Mrs.) Satyabhama Thakur v. CIT [1997] 223 ITR 791 (Pat.).

Revised return replaces original return - There is distinction between a revised return and a correction of the return. If the assessee files some application for correcting a return already filed or making amendments therein, it would not mean that he has filed a revised return. It will still retain the character of an original return, but once a revised return is filed, the original return must be taken to have been withdrawn and to have been substituted by a fresh return for the purpose of assessment - Dhampur Sugar Mills Ltd. v. CIT [1973] 90 ITR 236 (All.)/Chief CIT v. Machine Tool Corporation of India Ltd. [1992] 108 CTR (Kar.) 110.

(Contra)

Revised return does not wash away original return - The revised return filed under section 139(5) does not wash away the original return. An originally filed return is a return in all essential respects and the revised return only cures the defects contained in the original return - CIT v. Chitranjali [1986] 159 ITR 801 (Cal.).

Others - In a case where draft assessment order has already been made and referred to IAC with assesseeΓÇÖs objections, revised return filed by assessee cannot be entertained - Panchamahal Steel Ltd. v. U.A. Joshi, ITO [1997] 225 ITR 458/93 Taxman 1 (SC)

Thank you Mr Prakash for the detail reply.

Reagrding this statement "" [font=""Trebuchet MS""]Such a revised return may be filed by the assessee at any time before the assessment is made"" , [/font][font=verdana]how do I know whether the assessment is completed or not, whom I need to contact inorder to get this information.[/font]

Thanks

Prashant

Dear senior members

I am having a query regarding filing of Revised ITR  u/s 139(5) for AY 2012-13 and AY 2013-14 when i have received intimation of processing the same under section143(1). I think the above intimation is a temporary assessment order. I want to claim refund of   tax rebate u/s 80E for the above years. Can i do so now.  I will be thankful if my seniors can answer me.

 

Bharat Goel