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TMI Blog2017 (7) TMI 866X X X X Extracts X X X X X X X X Extracts X X X X ..... pecified u/s 139(1) of the Act. The provisions of section 292B also comes to the rescue of the Assessee in as much as the return filed cannot be invalid merely by the reason of any mistake, defect or omission in such return of income when in substance and effect if such return is in conformity with or according to the intent and purpose of this Act. The return filed manually may at best be said to be a defective return and not an invalid return. The third member of the Mumbai Bench held that the return filed separately by the four cells of the Assessee declaring total loss claimed by the Assessee did comply in substance and in effect within the intent and purpose of the Act and in view of the provisions of Section 292B and the defect is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... informed that it will try filing the return online again but to be on a safer side it is filing return manually and requested that the same may be taken on record. The manual return filed by the Assessee on 30.11.2011 is within the due date specified under the provisions of 139(1) of the Act. 4. Subsequently notice u/s 142(1) was issued to the Assessee on 27.09.2012 requiring the Assessee to file return of income. In response to the said notice, the Assessee filed return of income electronically on 11.10.2012. However, the Assessee noticed that while filing the return of income electronically on 11.10.2012, business loss of ₹ 3,75,35,148/- and unabsorbed depreciation of ₹ 1,14,60,217/- was inadvertently not set off and there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lems and therefore return was filed manually on 30.11.2011 and this was also informed to the Assessing Officer on the very same day as to why the return could not be filed electronically and the return was filed manually and requested to take the return on record. The Ld. Counsel submits that since the manual return was filed in time, there is no justification in not considering such return as original return and denying the set off and carry forward of losses. Referring to the decision of third member of Mumbai Bench in the case of Nicholas Applegate South East Asia Fund Ltd. Vs. ADIT [117 ITD 299], the Ld Counsel submits that in this case, the Assessee filed four returns separately in respect of its four cells within the time prescribed u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it could not file the return electronically and the return filed manually be taken on record. In response to the notice u/s 142, the Assessee filed return on 11.10.2012. The Assessing Officer acting upon this electronic return denied the set off of carry forward of losses to the Assessee on the ground that the Assessee did not file the return of income electronically within the due date specified under the provisions of Section 139(1) of the Act. The Ld. CIT (Appeals) agreed with the view of the Assessing Officer. Now the question before us to be addressed is as to whether original return filed manually can be treated as a valid return or not. No doubt, the requirement is that the Assessees should file returns electronically within the due ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an invalid return. The third member of the Mumbai Bench held that the return filed separately by the four cells of the Assessee declaring total loss claimed by the Assessee did comply in substance and in effect within the intent and purpose of the Act and in view of the provisions of Section 292B and the defect is not material in the light of the provisions of Section 292B. While holding so, it was observed as under : 15. The issue for our consideration is whether the assessee is entitled to carry forward the loss incurred by it in the business of trading in shares by the four cells/units established by the assessee in India. ln this connection it would be relevant to refer the provisions of section 80 which is non obstante provisio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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