Section 139(1) of the Income Tax Act

Income-tax Act, 2025: s.263

Section 139(1) falls under section 139 of the Income-tax Act, 1961, which corresponds to section 263 (Return of income) of the Income-tax Act, 2025.

Read section 263 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 139(1) is CIT v. Manjunatha Cotton & Ginning Factory (359 ITR 565), cited in 2,590 of the 8,117 judgments on BharatTax that turn on this section.

Leading authorities on Section 139(1)

CIT v. Manjunatha Cotton & Ginning Factory
359 ITR 565 · 2013 · High Court
2,590
citing judgments

A penalty notice issued under section 274 read with section 271(1)(c) is invalid if it fails to specify whether the penalty proceedings are initiated for concealment of income or for furnishing inaccurate particulars of income. This non-specification vitiates the penalty proceedings.

CIT v. AIMIL Ltd.
321 ITR 508 · 2010 · High Court
1,629
citing judgments

Employee contributions to PF and ESIC, deposited beyond the due date under the respective Acts but within the due date for filing the income tax return under Section 139(1), are allowable deductions under Section 36(1)(va). Such disallowance cannot be made during processing under Section 143(1).

Checkmate Services Pvt. Ltd. v. CIT
143 Taxmann.com 178 · 2022 · Supreme Court
1,392
citing judgments

Employee contributions to provident fund and ESI deposited by an employer beyond the due dates prescribed under the respective special Acts are not allowable as a deduction under section 36(1)(va) of the Income-tax Act, 1961. Such disallowance can be made during processing under section 143(1).

CIT v. Gujarat State Road Transport Corporation
366 ITR 170 · 2014 · High Court
1,158
citing judgments

Employees' contributions to welfare funds, such as provident fund, are not allowable as a deduction under section 36(1)(va) if deposited beyond the due date prescribed under the respective welfare statutes, even by a single day. Such delayed deposits are not cured even if made before the income-tax return filing due date.

CIT v. Pruthvi Brokers & Shareholders
349 ITR 336 · 2012 · High Court
956
citing judgments

Appellate authorities can entertain fresh claims or revised computations of income made by an assessee, even if these were not submitted through a revised return of income.

CIT v. SSA’s Emerald Meadows
73 Taxmann.com 241 · 2016 · High Court
791
citing judgments

A penalty notice under section 271(1)(c) read with section 274 of the Income Tax Act is invalid if it fails to specify whether the penalty is for concealment of income or for furnishing incorrect particulars of income.

Union of India v. Azadi Bachao Andolan
263 ITR 706 · 2003 · Supreme Court
691
citing judgments

A citizen is free to carry on business within the law, and mere tax planning without a motive to evade taxes through colorable devices is not frowned upon. The liability to taxation, for the purpose of tax treaty application, is a legal situation, not the fiscal fact of actual payment.

(i) CIT v. Merchem Ltd.
378 ITR 443 · 2015 · High Court
631
citing judgments

Belated remittance of employees' contribution to ESI and PF, even if deposited before the due date for filing the return of income under Section 139(1), is not allowed as a deduction. This disallowance falls under Section 36(1)(va) read with Section 2(24)(x), as Section 43B applies only to employer's contributions.

Co-operative Bank Ltd. v. CIT
384 ITR 490 · 2016 · High Court
631
citing judgments

Co-operative banks are not fundamentally different from co-operative societies, entitling them to claim deductions under Section 80P of the Income Tax Act, 1961, including for interest income treated as business income.

CIT v. Ghatge Patil Transports Ltd.
368 ITR 749 · 2014 · High Court
609
citing judgments

Deduction for employees' contributions to PF and ESIC is allowable under Section 43B if paid before the due date for filing the return under Section 139(1); similarly, delayed deposits of employers' contributions to ESIC and PF are also allowable.

Judgments on Section 139(1)

Ravi Sopan Agarkar, Pune vs. Income-Tax Officer, Ward 8(1), Pune

In the result, appeal of the assessee is allowed

ITA 652/PUN/2021[2019-20]Status: DisposedITAT Pune04 Aug 2022AY 2019-20

Bench: Shri S.S.Godara & Dr. Dipak P. Ripoteआयकर अपीलसं. / Ita No.652/Pun/2021 िनधा"रण वष" / Assessment Year : 2019-20 Ravi Sopan Agarkar, The Income Tax Officer, Near Zp School, Agarwadi, Vs Ward-8(1), Pune. Chakan, Tal. Khed, Pune-410501. Pan: Ajtpa 7236 Q Appellant/ Assessee Respondent / Revenue Assessee By Shri M.K.Kulkarani – Ar Revenue By Shri M.G.Jasnani – Dr Date Of Hearing 19/07/2022 Date Of Pronouncement 04/08/2022 आदेश/ Order Per Dr. Dipak P. Ripote, Am: This Appeal Filed By The Assessee Is Directed Against The Order Of National Faceless Appeal Centre (Nfac), Delhi Under Section 250 Of The Income Tax Act, For The Assessment Year 2019-20 Dated 26.10.2021. The Assessee Raised The Following Grounds Of Appeal: “1) On The Facts & In The Circumstances Of The Case & In Law The Ld. Nfac-Delhi Was Not Justified In Disallowing Contribution Made To Epf Under S. 36(1)(Va) Holding That The Amended Law Applied W.E.F. 01-4-2021 Being Clarificatory & Retrospective Amendment. In View Of This The New Law Was Applicable & As The Contribution Received From Employee Was Not Credited Before Due Date Of The Parent Act. There Is No Retrospective Effect To The Amendment. It Be Held Accordingly. 2) On The Facts & In The Circumstances Of The Case & In Law Nfac Has Wrongly Held That The Amended Law Applied W.E.F. 1-4- 2021 Was Clarificatory Nature & Applied All Pending Assessments Also. The Inserted Explanation 2 To Clause (Va) Of Sub-Section (1) To Clarify That Provisions Of Section 43B Shall Not Apply & Shall Be

Section 139Section 139(1)Section 143(1)Section 234ASection 250Section 36Section 36(1)(va)Section 43B

DCIT Cent. Cir-4(2), Mumbai vs. M/S. K. Raheja Pvt. Ltd, Mumbai

In the result, the appeal of the assessee is allowed and the appeal of the Revenue stands dismissed

ITA 2218/MUM/2021[2018-19]Status: DisposedITAT Mumbai03 Aug 2022AY 2018-19

Bench: Shri Aby T. Varkey, Jm & Shri Om Prakash Kant, Am आयकर अपील सं/ I.T.A. No.1970/Mum/2021 (निर्धारण वर्ा / Assessment Year:2018-19) K. Raheja Pvt. Ltd. बिधम/ Dcit Central Circle-4(2) Raheja Tower, Plot No. C- Room No.1918, Air India Vs. 30, Oppo. Sidbi, Bandra Building, Nariman Point- Kurla Complex, Bandra (E), 400021. Mumbai-400051. आयकर अपील सं/ I.T.A. No. 2218/Mum/2021 (निर्धारण वर्ा / Assessment Year:2018-19) Dcit Central Circle-4(2) बिधम/ K. Raheja Pvt. Ltd. Room No.1918, Air India Raheja Tower, Plot No. C-30, Vs. Building, Nariman Point- Oppo. Sidbi, Bandra Kurla 400021. Complex, Bandra (E), Mumbai-400051. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaack1949H (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Assessee By: Shri Vijay Mehta Revenue By: Smt. Neelam Shukla (Dr) सुनवाई की तारीख / Date Of Hearing: 17/06/2022 घोषणा की तारीख /Date Of Pronouncement: 03/08/2022 आदेश / O R D E R Per Aby T. Varkey, Jm: These Are Cross Appeals Preferred By The Assessee & The Revenue Against The Order Of The Ld. Cit(A)-52, Mumbai Dated 08.09.2021 For The A.Y.2018-19. 2. The Grounds Of Appeal Raised By The Assessee Are As Under: -

For Appellant: Shri Vijay MehtaFor Respondent: Smt. Neelam Shukla (DR)
Section 132Section 132(4)Section 139(1)Section 14A