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Issues involved: Appeal against assessment completed u/s 143(3) of the Income-tax Act, 1961 based on original return despite a revised return filed within the time limit u/s 139(5).
Summary: The appeal was filed against the assessment completed u/s 143(3) of the Income-tax Act, 1961 for the assessment year 1992-93, based on the original return, disregarding the revised return filed by the assessee within the time limit allowed u/s 139(5). The assessee had initially filed a loss return within the due date, followed by a revised return showing a higher loss amount, filed before the assessment completion date. The Assessing Officer, however, completed the assessment based on the original return, not considering the revised loss return. In the first appeal, it was held that the revised return filed by the assessee beyond the time limit could not be treated as a return u/s 139(3), thus restricting the claim of loss to the amount in the original return. The assessee contended that the revised return should have been considered as it was filed before the assessment order was passed, citing principles from a Gujarat High Court case. The Departmental Representative argued that the benefit of carry forward of loss is available only for a return filed in accordance with the provisions of subsection (3) of section 139, and the provision for filing a revised return is under subsection (5), which was not complied with in this case. The Tribunal noted that once a return is filed u/s 139(3), the assessee can file a revised return u/s 139(5) within the provided time, replacing the original return. The Tribunal emphasized that the revised return filed within the time limit replaces the original return, and the Assessing Officer is obligated to consider it. Citing a Gujarat High Court decision, the Tribunal directed the Assessing Officer to re-determine the loss based on the revised return filed by the assessee, clarifying that section 80 of the Income-tax Act does not impact the carry forward of depreciation. Consequently, the appeal by the assessee was allowed.
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