2019 (3) TMI 1299 - AT - Income Tax

Rectification of mistake u/s 154 - return of income filed u/s 139(4)- rectification application pointing out that the income assessed u/s 143(1) was not in conformity with that of the income returned in revised return of income filed on 11.03.2012 - Rejection of application u/s 154 - HELD THAT - There is no dispute that the original return filed on 05.09.2013 was a belated return and hence, has to be considered u/s 139(4) of the Act. Perusal of the section 139(5) clearly shows that only those returns which have been filed u/s 139(1) of the Act can be revised and since the return of income of the assessee was filed u/s 139(4) of the Act, in our understanding of the law, the same could not have been revised and, therefore, there is no error in the findings of the Assessing Officer and since the same has been confirmed by the CIT(A), no interference is called for. - Decided against assessee.

Summary

Issues:
- Rejection of application u/s 154 of the Income-tax Act, 1961

Analysis:
The appeal before the Appellate Tribunal ITAT Delhi was against the order of the Commissioner of Income Tax [Appeals] -2, Muzaffarnagar concerning the assessment year 2011-12. The main grievance raised by the assessee was the confirmation of the rejection of the application u/s 154 of the Income-tax Act, 1961 by the Assessing Officer. The facts of the case revealed that the original return of income was E-filed by the assessee on 05.09.2013, followed by a revised return filed electronically on 11.03.2012. The assessee's rectification application was rejected by the Assessing Officer as not maintainable, leading to an appeal before the CIT(A) which was unsuccessful.

The argument presented by the assessee was that certain claims made in the revised return of income, such as interest paid to partners and salary amounting to a specific sum, were not allowed during the processing of the return of income u/s 143(1) of the Act. The assessee contended that since the mistake was apparent from the record, the Assessing Officer should have rectified it u/s 154 of the Act. However, the Assessing Officer's decision was supported by the lower authorities, leading to the dismissal of the appeal by the Appellate Tribunal.

Upon careful consideration, the Tribunal observed that the original return filed on 05.09.2013 was a belated return falling under u/s 139(4) of the Act, which differs from the provisions of u/s 139(1) allowing for revised returns. As per the law, only returns filed under u/s 139(1) can be revised, and since the assessee's return was filed under u/s 139(4), it could not have been revised. Therefore, the Tribunal concluded that there was no error in the Assessing Officer's findings, which were upheld by the CIT(A), leading to the dismissal of the appeal filed by the assessee.

In conclusion, the Appellate Tribunal ITAT Delhi upheld the rejection of the application u/s 154 of the Income-tax Act, 1961, based on the specific provisions regarding the filing and revision of returns under different sections of the Act. The decision emphasized the importance of adhering to the statutory requirements and limitations when seeking rectifications or revisions in income tax assessments.