1996 (4) TMI 86 - HC - Income Tax

Summary

Issues:
1. Whether a revised return can be filed when a return has been filed under section 139(4) of the Income-tax Act, 1961?
2. If a revised return can be filed under section 139(4), whether the assessment made on the basis of the return filed by the assessee was valid?

Analysis:

Issue 1:
The case involved the question of whether a revised return can be filed when the original return was filed under section 139(4) of the Income-tax Act, 1961. The assessee in this case filed the original return on November 4, 1975, under section 139(4) and a revised return on March 21, 1978. The Appellate Assistant Commissioner set aside the assessment as invalid, and the Tribunal referred the matter to the High Court. The High Court analyzed the provisions of section 139(5) which allow for filing a revised return if the original return was filed under sub-sections (1) or (2) of section 139. The Court also considered the time limit for completion of assessments under section 153(1)(c) which mentions the filing of a return or revised return under sub-section (4) or (5) of section 139. The Court referred to various High Court decisions and an instruction by the Central Board of Direct Taxes, ultimately holding that no revised return can be filed under sub-section (5) of section 139 when the original return was filed under sub-section (4). The Court agreed with the view taken by certain High Courts and answered the first question in the negative and in favor of the assessee.

Issue 2:
The second issue was rendered redundant by the Court's decision on the first issue. Since the Court held that a revised return cannot be filed under section 139(5) when the original return was filed under section 139(4), the validity of the assessment made on the basis of the revised return filed by the assessee did not need to be addressed. The Court did not provide a separate analysis for this issue due to its decision on the first issue.

In conclusion, the High Court held that a revised return cannot be filed under section 139(5) when the original return was filed under section 139(4) of the Income-tax Act, 1961. The Court's decision was based on a detailed analysis of the relevant provisions of the Act, High Court decisions, and the instruction issued by the Central Board of Direct Taxes. The Court answered the first question in the negative and in favor of the assessee, making the second question redundant.