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TMI Blog2023 (11) TMI 643X X X X Extracts X X X X X X X X Extracts X X X X ..... r scrutiny was the revised return and not the original one. From para 1 of the notice u/s. 143(2), it is clear that it refers to the deduction claimed under the head `Capital gains , which was claimed in the revised return filed u/s. 139(5). It thus become palpable that the revised return was considered for selection of the case under CASS and the notice u/s. 143(2) was also issued with reference to the revised return only. Revised return did not conform to the prescription of section 139(5), before its substitution w.e.f. A.Y. 2017-18, which provided for revision of a return filed u/s. 139(1) and not u/s. 139(4) of the Act. The substituted section 139(5) now liberalizes the revision of return originally filed under sub-section (1) or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the assessment year 2015-16. 2. Succinctly, the facts of the case are that the assessee is an individual engaged in the business of sale of auto parts. Original return was filed on 11-09-2015 declaring total income at Rs. 5,01,460/-, which was a belated return u/s 139(4) of the Income-tax Act, 1961 (hereinafter called `the Act ). Thereafter, the assessee filed a revised return on 11-02-2016 declaring total income at Rs. 95,21,060/-. In this return, the assessee declared long term capital gain and also claimed exemption under section 54F of the Act. The Assessing Officer (AO) completed the assessment at a total income of Rs. 1,51,53,060/- by adopting income as per the return of income filed at Rs. 5,01,460/-. The ld. CIT(A) did not all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge Pisadevi, District Aurangabad. The return was revised on 11-02-2016 with the returned total income at Rs. 95,21,060/-, also disclosing long term capital gain on the transfer of the property and claiming exemption u/s. 54F of the Act. 5. Sub-section (5) of section 139, prior to its substitution by the Finance Act, 2016 w.e.f. 01-04-2017, provides that: If any person, having furnished a return under sub-section (1) or in pursuance to a notice issued under sub-section (1) of section 142 discovers any omission or any wrong statement therein, he may furnish a revised return at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier . A bare peru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the original or the revised return? If the assessment is found to be done of the original return, then no illegality can be attributed to it. The case was selected for limited scrutiny under Computer Aided Scrutiny Selection (CASS) for the reason of Deduction claimed under the head Capital Gains . The assessee had neither offered any income from Capital gain nor claimed any deduction/exemption under this head in the original return. It was only in the revised return that the assessee offered income from long term capital gain after claiming exemption u/s. 54F. This shows that the return taken up for scrutiny was the revised return and not the original one. 8. Section 143(2) is a jurisdictional provision, which gives to AO the requi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10. It is crystal clear from notice u/s. 143(2) that the AO took up the assessment for `Limited scrutiny on the reason of Deduction claimed under the head Capital Gains with reference to the return filed by the assessee vide Acknowledgement No.950640970110216 on 11-02-2016. We have noticed above that the assessee did not offer any income under the head `Capital gains in the original belated return. It was only in the revised return that the assessee offered long term capital gain and also claimed exemption under the head `Capital gains . From para 1 of the notice u/s. 143(2), it is clear that it refers to the deduction claimed under the head `Capital gains , which was claimed in the revised return filed u/s. 139(5) on 11-02-2016 with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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