2004 (2) TMI 740 - HC - Income Tax

Summary

Issues:
1. Interpretation of Sections 139(3) and 139(5) of the Income Tax Act regarding the filing of revised returns for carry forward of losses.

Analysis:
The judgment involves a dispute regarding the filing of revised returns by a Co-operative Society for the Assessment Year 1991-92 to carry forward losses. Initially, the society filed a return declaring a loss and later submitted a revised return indicating a higher loss after the final audit. The Assessing Officer restricted the carry forward based on the original return, leading to appeals and subsequent orders.

The Appellate Authority upheld the validity of the revised return but restricted the carry forward based on the original return filed under Section 139(3). However, the Income Tax Appellate Tribunal disagreed, stating that a revised return filed under Section 139(5) should be considered, setting aside previous orders.

The main contention was whether a revised return under Section 139(5) could be filed for a return submitted under Section 139(3). The appellant argued that Section 139(5) only applies to returns under Section 139(1), not Section 139(3). The Tribunal's view was that a revised return under Section 139(5) could be filed for any return, irrespective of the section under which it was initially filed.

The Court analyzed Sections 139(3) and 139(5) of the Income Tax Act. It noted that a return filed under Section 139(3) is deemed to be as if filed under Section 139(1), making all provisions applicable. Therefore, the Court found no reason to exclude the applicability of Section 139(5) to returns filed under Section 139(3).

The appellant's argument that Section 80 of the Income Tax Act does not allow for filing revised returns was dismissed by the Court. The Court emphasized that since Section 139(3) deems the return to be under Section 139(1), there is no need for further reference in Section 80. Additionally, there is no provision excluding the applicability of Section 139(5) to returns under Section 139(3).

Ultimately, the Court concluded that no substantial question of law existed in the appeal and dismissed it at the admission stage, affirming the Tribunal's decision to consider the revised return for carry forward of losses.