CIT, CHD. vs. M/S PB. SMALL INDUSTRIES & EXPORT CORP.

ITA/166/2007HC Punjab & HaryanaPHHC01072842200707 May 2007Author: MR. JUSTICE M.M. KUMAR,MR. JUSTICE RAJESH BINDAL3 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that there was no reason to differ from the view taken by the ITAT. The Court reasoned that the processing of a return under Section 143(1) and the completion of assessment are distinct concepts, dealt with under different provisions of the Act. The revised return was filed by the assessee within the period of limitation stipulated by Section 139(5) of the Act, which is one year from the end of the relevant assessment year or before the completion of assessment, whichever is earlier. The Court found that the processing under Section 143(1) did not amount to completion of assessment. Therefore, no substantial question of law arose for determination. The appeal filed by the revenue was dismissed as being without merit.

What were the facts?

The Revenue, Commissioner of Income Tax (CIT) Chandigarh, has appealed an order of the Income Tax Appellate Tribunal (ITAT), Chandigarh Bench. The ITAT had upheld the order of the CIT (Appeals), which had set aside the Assessing Officer's (AO) action. The assessee, M/s Punjab Small Industries and Export Corporation Ltd., filed its original return for assessment year 1999-2000 on December 31, 1999. Subsequently, on March 28, 2001, it filed a revised return under Section 139(5) of the Income Tax Act, 1961, reducing its declared income. The AO treated the revised return as time-barred, considering the original return had been processed under Section 143(1) on May 15, 2000, and deemed the assessment complete. The CIT (Appeals) and the ITAT disagreed, holding that processing under Section 143(1) does not constitute assessment.

What were the issues?

1. Whether, in the facts and circumstances of the case, the ITAT was right in holding that the assessee can validly file a revised return under Section 139(5) of the Income Tax Act, 1961, after the completion of the assessment under Section 143(1) of the Act? Assessee's Contention: The assessee contended that the revised return was filed within the time prescribed by Section 139(5), which allows filing a revised return within one year from the end of the relevant assessment year or before the completion of assessment, whichever is earlier. The processing of the return under Section 143(1) does not amount to completion of assessment. Revenue's Contention: The revenue argued that the assessment was complete upon the processing of the original return under Section 143(1) of the Act. Therefore, the subsequent filing of a revised return was barred by time.

Which sections of the Income-tax Act were involved?

Section 260A,Section 139(5),Section 143(1)

AI-generated summary — verify with the full judgment below

ITA 166 of 2007 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

ITA No. 166 of 2007 Date of decision 7 .5.2007 The Commissioner of Income Tax 1 Chandigarh .. petitioner Versus M/s Punjab Small Industries and Export Corporation Ltd. .. Respondent CORAM: HON'BLE MR. JUSTICE M.M. KUMAR HON'BLE MR. JUSTICE RAJESH BINDAL PRESENT: Mr.SK Garg Narwana, Advocate for the appellant. M.M.Kumar, J. In this appeal filed under section 260A of the Income Tax Act,1961 (for brevity 'the Act') the revenue has challenged the order dated 28.8.2006 passed by the Income Tax Appellate Tribunal, Chandigarh Bench A, Chandigarh in ITA No.349/Chandi/2005 in respect of the assessment year 1999-2000.It is claimed that the following substantial question of law would arise for determination of this Court. “ Whether in the facts and circumstances of the case, ITAT was right in holding that the assessee can validly file a revised return u/s 139(5) after completion of the assessment u/s 143(1) of the Income Tax Act, 1961 ?” The assessee has filed its return of income tax for the assessment year 1999-2000 on 31.12.1999 declaring its income at Rs.6,11,43,227/-. Subsequently on 28.3.2001, the assessee

The order continues below.

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