2016 (11) TMI 974 - HC - Income Tax

Defective return - Held that - This Court directs that the authority concerned may give to the present petitioner also an opportunity of rectifying the defect within the next 15 days. It is open to the assessee to place such material and evidence before the authority concerned that it may have to justify its claims. The authority may thereafter, pass fresh orders.

Summary

Issues:
Assessment year 2010-11 - Reassessment proceedings - Validity of return filed by the assessee - Defect in the return as per Section 139(9) of the Income Tax Act, 1961.

Analysis:
The petitioner filed a writ petition seeking directions regarding reassessment proceedings for the assessment year 2010-11. The Assistant Commissioner, Income Tax had earlier declared the return filed by the assessee as defective, citing Section 139(9) of the Income Tax Act, 1961. This section allows the Assessing Officer to intimate the defect to the assessee and provide an opportunity to rectify it within a specified period. Failure to rectify the defect within the given time renders the return invalid. The Act specifies conditions for a return to be regarded as defective, including the proper filling of annexures, payment of tax, submission of tax computation statement, audit report, proof of tax deductions, and maintenance of necessary accounts.

The court directed the authority to grant the petitioner 15 days to rectify the defect in the return. The assessee was permitted to submit relevant material and evidence to support their claims. Subsequently, the authority was instructed to issue fresh orders, ensuring that detailed reasons are provided for the decision. The judgment emphasized the importance of due process and the opportunity for the assessee to present their case effectively. The court disposed of the petition with the mentioned directions, without imposing any costs on either party.