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Issues involved:
The issue involved in this case is whether the Tribunal was correct in accepting the revised income u/s 139(5) of the Income Tax Act, against the original return filed by a State Government owned company acting as a development financial institution. Summary: The State Government owned company, acting as a development financial institution, filed a revised return u/s. 139(5) of the Income Tax Act after the Assessing Officer completed the assessment based on the original return, ignoring the revised one. The CIT (A) confirmed the Assessing Officer's order, leading the company to appeal to the Tribunal. The Tribunal directed the Assessing Officer to accept the revised return, stating that the company was entitled to file a revised return if any omission was made in the original return. The Revenue challenged this decision, leading to the proposed question of law. The company, which was a limited company, was involved in the Sale Tax Deferment Scheme initiated by the Government of Gujarat. However, when the scheme was canceled, the company reversed the income in its books of account for the assessment year 2005-06. The Tribunal found that all conditions for filing a revised return u/s. 139(5) were fulfilled by the company, including filing the original return u/s. 139(1) and discovering the omission in the original return. The Tribunal held that the company was within its right to revise the return based on the withdrawal of the government scheme. The High Court upheld the Tribunal's decision, stating that the company had the right to revise its return after discovering the omission due to the government's scheme withdrawal. The Court found no error in the Tribunal's interpretation and application of the law to the facts of the case, leading to the dismissal of the Tax Appeal. In conclusion, the High Court upheld the Tribunal's decision to accept the revised income u/s 139(5) of the Income Tax Act, stating that the company was entitled to revise its return based on the factual circumstances surrounding the government scheme withdrawal.
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