M/S. HOTEL MAHADEV,MUZAFFARNAGAR vs. ITO, MUZAFFARNAGAR

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ITA 1147/DEL/2015Status: DisposedITAT Delhi20 March 2019AY 2011-125 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that a belated return filed under section 139(4) cannot be revised under section 139(5). Therefore, the Assessing Officer's rejection of the rectification application was correct.

What were the facts?

The assessee filed a belated return and then a revised return. The Assessing Officer processed the return under section 143(1) but did not allow certain claims made in the revised return. The assessee sought rectification under section 154, which was rejected.

What were the issues?

Whether a belated return filed under section 139(4) can be revised under section 139(5) for the purpose of rectification.

Which sections of the Income-tax Act were involved?

Section 154,Section 143(1),Section 139(4),Section 139(5)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI ‘C’ BENCH,

Before: SHRI N.K. BILLAIYA, & SHRI K.N. CHARY

For Appellant: Shri Prem Prakash, Adv, Shri Ashish Aggarwal, Adv
Hearing: 19.03.2019Pronounced: 20.03.2019

PER N.K. BILLAIYA, ACCOUNTANT MEMBER,

1.

This appeal by the assessee is preferred against the order of the Commissioner of Income Tax [Appeals] -2, Muzaffarnagar dated 12.01.2015 pertaining to assessment year 2011-12.

2.

The solitary grievance raised by the assessee is that the CIT(A) was wrong in confirming the rejection of application u/s 154 of the Income-tax Act, 1961 [hereinafter referred to as 'the Act’ by the Assessing Officer.

3.

Briefly stated, the facts of the case are that the original return of income was E-filed by the assessee on 05.09.2013. Thereafter, the assessee revised the return of income once again Electronically, on 11.03.2012. The assessee moved a rectification application pointing out that the income assessed u/s 143(1) of the Act was not in conformity with that of the income returned in revised return of income filed on 11.03.2012. The Assessing Officer rejected the rectification application pointing out that it is not maintainable.

4.

The assessee carried the matter before the CIT(A) but without any success.

7.

Before us, the ld. AR strongly submitted that in the revised return of income, interest paid to partners and salary amounting to Rs. 2,51,038/- was claimed, which was not allowed while processing the return of income u/s 143(1) of the Act and since the mistake was apparent from record, the Assessing Officer should have rectified the same u/s 154 of the Act.

8.

Per contra, the ld. DR strongly supported the findings of the lower authorities.

9.

We have given thoughtful consideration to the orders of the authorities below. There is no dispute that the original return filed on 05.09.2013 was a belated return and hence, has to be considered u/s 139(4) of the Act. Section 139(5) of the Act contains provisions for revising return of income and the same reads as under:

“If any person, having furnished a return under sub-section (1) or in pursuance of 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 end of the relevant assessment year or before the completion of the assessment, whichever is earlier.]

10.

A perusal of the above section clearly shows that only those returns which have been filed u/s 139(1) of the Act can be revised and since the return of income of the assessee was filed u/s 139(4) of the Act, in our understanding of the law, the same could not have been revised and, therefore, there is no error in the findings of the Assessing Officer and since the same has been confirmed by the CIT(A), no interference is called for.

14.

In the result, the appeal filed by the assessee is dismissed.

The order is pronounced in the open court on 20.03.2019.

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