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2021 (9) TMI 955 - AT - Income TaxRevised income filed through revised computation - whether provisions of section 139(4) of the I.T. Act that do not allow to accept revised income except only through filling of revised return of income? - Whether CIT(A) has erred in directing the AO to accept the revised income filed through the revised computation, by the assessee, which is contradictory to the provisions of section 139(4)? - HELD THAT - It is clear from the order of Goetze India Ltd. 2006 (3) TMI 75 - SUPREME COURT that it is on the power of the Assessing Authority to entertain the claim for deduction otherwise than by filing a revised return, that the embargo has been put by their Lordships. It has been made clear in the order itself that such issue does not impinge upon the power of the Tribunal under section 154. In Smt. Raj Rani Gulati vs. CIT 2011 (10) TMI 78 - ALLAHABAD HIGH COURT , the Hon'ble jurisdictional Allahabad High Court has taken the above position into account while holding Goetze India Ltd. vs. CIT (supra) to be not applicable. - Decided against revenue.
Issues:
1. Interpretation of provisions of section 139(4) of the Income Tax Act regarding acceptance of revised income. 2. Authority of the CIT(A) to direct the Assessing Officer to accept revised income through revised computation without filing a revised return. Analysis: The judgment involves a recalled matter where the Tribunal recalled its earlier order for adjudication of a specific ground raised by the Department. The Department contended that the CIT(A) erred in directing the Assessing Officer to accept revised income through a revised computation without filing a revised return, contrary to section 139(4) of the Income Tax Act. The CIT(A) based its decision on the Supreme Court case of 'Goetze India Ltd. vs. CIT', emphasizing that the power to make fresh claims through revised returns is limited to the Assessing Officer, not the Appellate Authority. The Department argued that the revised computation should have been filed along with a revised return as per the provisions of the Income Tax Act. The CIT(A) justified its decision by stating that the 'Goetze India Ltd.' case does not apply to appellate proceedings. The assessee's representative supported the CIT(A)'s decision, emphasizing that the assessment was completed based on audited accounts and the revised computation should have been accepted initially. The Tribunal analyzed the 'Goetze India Ltd.' case and a jurisdictional Allahabad High Court case, 'Smt. Raj Rani Gulati vs. CIT', to determine the applicability of the decision. The Tribunal concluded that the power to entertain claims for deduction without filing a revised return is with the Assessing Authority, not the Tribunal. Therefore, the Tribunal rejected the Department's ground, stating that the CIT(A) was justified in directing the Assessing Officer to accept the revised income through the revised computation. Consequently, the Tribunal dismissed the Department's appeal, as all grounds raised by the Revenue were rejected. In summary, the judgment clarifies the distinction between the powers of the Assessing Officer and the Appellate Authority regarding the acceptance of revised income through revised computations without filing revised returns. The decision is based on the interpretation of relevant provisions of the Income Tax Act and previous judicial precedents, ultimately upholding the CIT(A)'s directive to the Assessing Officer.
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