1999 (4) TMI 22 - HC - Income Tax

Summary

Issues:
- Whether the assessment made by the Income-tax Officer is barred by limitation?

Analysis:
The case involved a question of law regarding the assessment year 1973-74 and the timeliness of the assessment made by the Income-tax Officer. The assessee had initially filed a return on August 14, 1973, after an extension was granted by the Central Board of Direct Taxes until August 15, 1973. Subsequently, a revised return was filed on March 22, 1976. The main argument presented was that since the revised return was filed under section 139(5) of the Income-tax Act and not under section 139(1) or section 142(1), it should be considered invalid, leading to the assessment being beyond the prescribed time limit under section 153 of the Act.

The Tribunal rejected the assessee's argument, stating that the return filed within the extended period could be considered as filed under section 139(1) of the Act. The High Court analyzed the situation and concluded that the assessee was justified in filing the return before the extended deadline of August 15, 1973. It was highlighted that section 139(1) allowed for filing returns even after the original due date, with the Income-tax Officer having the discretion to extend the deadline in certain circumstances.

The Court emphasized that the assessee, by availing the extension granted by the Central Board of Direct Taxes, cannot later claim that the return was not filed under section 139(1) of the Act. The decision to grant the extension to all assessees was deemed similar to the discretion exercised by the Income-tax Officer under the Act. Additionally, the Court noted that the assessee's subsequent filing of a revised return under section 139(5) indicated a belief that the original return was filed under section 139(1), estopping the assessee from challenging the validity of the revised return and the assessment timeline.

Based on the facts and legal provisions discussed, the High Court held that the revised return could be validly treated as filed under section 139(5) of the Act. Consequently, the assessment made by the Income-tax Officer was deemed not barred by limitation under section 153 of the Act. The Court ruled in favor of the Revenue, concluding that the assessment was justified and not time-barred.

In conclusion, the High Court disposed of the reference, stating that the assessment was not barred by limitation, and the Assessing Officer acted appropriately in framing the assessment based on the revised return. The Court's decision was against the assessee and in favor of the Revenue, with no costs awarded in the matter.