2010 (3) TMI 756 - HC - Income Tax

Revised return - The provision OF section 143(1B) mandates that if after the issuance of intimation a revised return is furnished by an assessee under sub-section (5) section 139 it is incumbent upon the Assessing Officer to process the revised return and amend the intimation issued under section 143(1)(a) on the basis of the revised return - At this stage there is no question of going into the validity of the return filed under section 139(5) of the Act if the revised return is filed within the prescribed period of limitation - An intimation u/s 143(1)(a) of the Act cannot be equated with an assessment framed u/s 143(3) of the Act and the Assessing Officer cannot refuse to process the revised return and modify the intimation in accordance with section 143(1B) of the Act - Thus the appeal is dismissed against of revenue.

Issues:
1. Validity of processing revised return under section 143(1B) after original return processed under section 143(1)(a).
2. Interpretation of section 139(5) regarding filing of revised return.
3. Application of section 143(1B) in relation to the processing of revised returns.

Issue 1:
The main issue in this case was the validity of processing a revised return under section 143(1B) of the Income-tax Act after the original return had already been processed under section 143(1)(a). The appellant-Revenue questioned the decision of the Tribunal to confirm the order directing the Assessing Officer to process the revised return filed by the assessee. The Tribunal held that the Assessing Officer was obligated to process the revised return under section 143(1B) if it was filed within the prescribed time limit, regardless of the intimation sent under section 143(1)(a). The Tribunal differentiated between an intimation and a formal assessment, stating that the intimation does not equate to an assessment, and therefore, the provisions of section 143(1B) must be followed.

Issue 2:
Regarding the interpretation of section 139(5) of the Act, the Court highlighted that the provision allows a person to file a revised return if any omission or wrong statement is discovered in the original return before the expiry of one year from the end of the relevant assessment year or before the completion of assessment, whichever is earlier. In this case, the revised return was filed within the permissible time frame, as it was submitted within one year from the end of the assessment year 1995-96, before the assessment was completed.

Issue 3:
The Court analyzed the application of section 143(1B) in relation to processing revised returns. Section 143(1B) mandates that if a revised return is furnished after the issuance of an intimation, the Assessing Officer must process the revised return and amend the intimation based on the revised return. The Court emphasized that at this stage, the validity of the return filed under section 139(5) should not be questioned if the revised return is filed within the specified time limit. The Court clarified that an intimation under section 143(1)(a) should not be treated as a formal assessment under section 143(3), and the Assessing Officer cannot refuse to process the revised return as per the provisions of section 143(1B).

In conclusion, the Court dismissed the appeal, upholding the Tribunal's decision, as it found no legal infirmity in the Tribunal's order. The Court emphasized the importance of following the provisions of section 143(1B) and processing revised returns within the prescribed time limits, irrespective of the intimation sent under section 143(1)(a).

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