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TMI Blog2023 (5) TMI 828X X X X Extracts X X X X X X X X Extracts X X X X ..... hich could have been processed u/s 143(1). Accordingly, processing done by CPC of an invalid return is improper and not in accordance with the provisions of the Act and Rule 8 of the aforesaid scheme. We are of the considered view that ld. CIT(A) is wrong in holding the processing of return of income u/s 143(1) as valid when prior to such processing, an order u/s 139(9) was passed treating the return as invalid resulting into situation as if no return has been filed. Accordingly, grounds taken by the assessee are allowed. - ITA No.604/Kol/2022 - - - Dated:- 20-4-2023 - Shri Sonjoy Sarma, Judicial Member And Shri Girish Agrawal, Accountant Member For the Appellant : Shri Miraj D. Shah, AR For the Respondent : Smt. Ranu Biswa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39(9). 5) Even otherwise, on the facts and circumstances of the case, the appellant is a mutual Association and no tax liability be arise on the same. 6) We may add, alter, amend or withdraw any grounds of appeal on or before the date of hearing. 2. We note that there is a delay of 165 days in filing the present appeal for which petition for condonation of delay along with the affidavit is placed on record. The impugned order of ld. CIT(A) is dated 15.03.2022 received by the assessee on 19.03.2022. The appeal was due to be filed on or before 18.05.2022 and it has been filed on 31.10.2022. Considering the decision of Hon ble Supreme Court in the case of suo moto Writ Petition (C) No. 3 of 2020 dated 10.01.2022, delay of 12 day ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turn of income. Accordingly, an order u/s 139(9) of the Act was passed on 09.03.2017 vide communication reference no. CPC/1415/G5/1600111455, treating the said return as invalid return. 3.1. Scanned copy of this order is reproduced as below: Dear Sir/Madam, Order u/s 139(9) of THE INCOME-TAX ACT, 1961 TREATING THE RETURN AS INVALID RETURN The assessee had filed a return of income for assessment year 2014-15 vide acknowledgement no. 149386451310316 dated 31.03.2016 (Acknowledgement Number and date are obtained from the ITR). The said return was found to contain the below mentioned defects. Sl No. Error Code Error Description 1 57 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 15,86,653/- was not allowed and the total income was assessed at Rs. 16,00,790/-, thereby raising a demand of Rs. 7,80,030/-. 5. Aggrieved, assessee went in appeal before the ld. CIT(A) who dismissed the appeal of the assessee. 6. Aggrieved, assessee is in appeal before the Tribunal. 7. The main argument of the assessee is that once that return is held as invalid u/s 139(9) of the Act, their remains no return to be processed u/s 143(1) of the Act. Ld. counsel for the assessee stressed on the fact that CPC has passed an order u/s 139(9) of the Act on 09.03.2017 and once the said order is passed, there exists no return which could have been processed u/s 143(1). He drew attention to the provisions of section 139(9) of the Act as w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hing contained in any other provision of this Act, the return shall be treated as an invalid return and the provisions of this Act shall apply as if the assessee had failed to furnish the return: Provided that where the assessee rectifies the defect after the expiry of the said period of fifteen days or the further period allowed, but before the assessment is made, the [Assessing] Officer may condone the delay and treat the return as a valid return. 8.1. Section 143(1): From the perusal of the above section, it is noted that once the return of income is treated as invalid, it results into situation as if assessee has failed to furnish the return and the provisions of this Act shall apply accordingly. B Section 143(1): Where a r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... received from the person in reply to the notice of defective return, the Commissioner may declare a return as not having been uploaded at all or process the return on the basis of information available. 8.4. Further, Rule 8 of the same scheme provides for processing of return Clause (i) of Rule 8 reads as The centre shall process valid return of income in the following manner, namely:- 8.5. In Rule 8 as stated above, it is categorically mentioned that processing of return is of a valid return of income which is in contradiction to Clause (v) of Rule 6 wherein the Commissioner may process the return which has been held to be invalid or defective on the basis of information available. 9. In the present case before us, an order u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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