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)

Kollam District Police Department Employees Co-Operative Society, Kollam vs. ITO, Ward-2, Kollam

In the result, the appeal filed by the assessee bearing ITA No

ITA 639/COCH/2025[2017-18]Status: DisposedITAT Cochin30 Oct 2025AY 2017-18

Bench: Shri Inturi Rama Rao, Am & Shri Anikesh Banerjee, Jm Assessment Year: 2017-18 Kollam District Police Department .......... Appellant Employees Co-Operative Society Lt No Q 1179, Near S P Office, Kollam-691001 [Pan: Aacak5573H] Vs. Assessment Unit, Income Tax Department ......... Respondent Assessee By: Shri Surendranath Rao, Ca Revenue By: Smt. Leena Lal, Sr. D.R. Assessment Year: 2013-14 Porkulam Service Co-Op. Bank Ltd. .......... Appellant (Via) Pazhanji, Thalappilly, Thrissur- 680542 [Pan: Aaaap4486A] Vs. The Income Tax Officer, W-1& Tps ......... Respondent Assessee By: ------- None ------- Revenue By: Smt. Leena Lal, Sr. D.R. Date Of Hearing: 29.10.2025 Date Of Pronouncement: 30.10.2025 Kollam District Police Deptt. Employees Co.Op. Society & Porkulam Scb O R D E R Per: Anikesh Banerjee, Jm The Instant Appeal Of Both The Assessee Was Filed Against The Order Of The Learned National Faceless Appeal Centre, Delhi [For Brevity, ‘Ld. Cit(A)’] Passed Under Section 250 Of The Income-Tax Act, 1961 (In Short, The Act’) For Assessment Year 2017-18, Date Of Order 10/07/2025 For Petitioner-1 & For Assessment Year 2013-14, Date Of Order 25/06/2025 For Petitioner-2.The Impugned Orders Were Emanated From The Order Of The Assessment Unit, Income Tax Department (In Short, ‘Ld. Ao’) Order Passed Under Section 271B Of The Act, Date Of Order 12/07/2023 For Ay Petritioner-1 &19/09/2022 For Petitioner-2. 2. Both The Appeals Have Common Issue & Common Fact. So, We Proceed To Dispose Off By Common Order. Ita No. 639/Coch/2025 Is Taken As Lead Case.

For Appellant: Shri Surendranath Rao, CAFor Respondent: Smt. Leena Lal, Sr. D.R
Section 139(1)Section 143(3)Section 250Section 271BSection 44ASection 80P(2)(a)

Porkulam Service Co-Op.Bank Ltd, Thalappilly vs. Incometax Officer, Guruvayoor

In the result, the appeal filed by the assessee bearing ITA No

ITA 605/COCH/2025[2013-14]Status: DisposedITAT Cochin30 Oct 2025AY 2013-14

Bench: Shri Inturi Rama Rao, Am & Shri Anikesh Banerjee, Jm Assessment Year: 2017-18 Kollam District Police Department .......... Appellant Employees Co-Operative Society Lt No Q 1179, Near S P Office, Kollam-691001 [Pan: Aacak5573H] Vs. Assessment Unit, Income Tax Department ......... Respondent Assessee By: Shri Surendranath Rao, Ca Revenue By: Smt. Leena Lal, Sr. D.R. Assessment Year: 2013-14 Porkulam Service Co-Op. Bank Ltd. .......... Appellant (Via) Pazhanji, Thalappilly, Thrissur- 680542 [Pan: Aaaap4486A] Vs. The Income Tax Officer, W-1& Tps ......... Respondent Assessee By: ------- None ------- Revenue By: Smt. Leena Lal, Sr. D.R. Date Of Hearing: 29.10.2025 Date Of Pronouncement: 30.10.2025 Kollam District Police Deptt. Employees Co.Op. Society & Porkulam Scb O R D E R Per: Anikesh Banerjee, Jm The Instant Appeal Of Both The Assessee Was Filed Against The Order Of The Learned National Faceless Appeal Centre, Delhi [For Brevity, ‘Ld. Cit(A)’] Passed Under Section 250 Of The Income-Tax Act, 1961 (In Short, The Act’) For Assessment Year 2017-18, Date Of Order 10/07/2025 For Petitioner-1 & For Assessment Year 2013-14, Date Of Order 25/06/2025 For Petitioner-2.The Impugned Orders Were Emanated From The Order Of The Assessment Unit, Income Tax Department (In Short, ‘Ld. Ao’) Order Passed Under Section 271B Of The Act, Date Of Order 12/07/2023 For Ay Petritioner-1 &19/09/2022 For Petitioner-2. 2. Both The Appeals Have Common Issue & Common Fact. So, We Proceed To Dispose Off By Common Order. Ita No. 639/Coch/2025 Is Taken As Lead Case.

For Appellant: Shri Surendranath Rao, CAFor Respondent: Smt. Leena Lal, Sr. D.R
Section 139(1)Section 143(3)Section 250Section 271BSection 44ASection 80P(2)(a)

Ala Service Co-Operative Bank Ltd, Thrissur vs. ITO, Ward-2(1), Thrissur

In the result, the appeal filed by the assessee stands dismissed

ITA 581/COCH/2025[2018-19]Status: DisposedITAT Cochin30 Oct 2025AY 2018-19

Bench: Shri Inturi Rama Rao, Am & Shri Anikesh Banerjee, Jm Assessment Year: 2018-19 Ala Service Co-Op. Bank Ltd . .......... Appellant Santhipuram P.O., Kodungallur, Thrissur 680668 [Pan: Aadaa5833H] Vs. The Income Tax Officer, Wd-2(1), Thrissur ......... Respondent Assessee By: Shri Jojo, C.A., Advocate Revenue By: Smt. Leena Lal, Sr. D.R. Date Of Hearing: 28.10.2025 Date Of Pronouncement: 30.10.2025 O R D E R Per: Inturi Rama Rao, Am This Appeal Filed By The Assessee Is Directed Against The Order Of The National Faceless Appeal Centre, Delhi (Nfac) Dated 17.06.2025 For Assessment Year (Ay) 2018-19. 2. Brief Facts Of The Case Are That The Appellant Is A Co-Operative Society Registered Under The Kerala State Co-Operative Societies Act, 1969. It Is Classified As A Primary Agricultural Credit Co-Operative Society Engaged In The Business Of Providing Credit Facilities To Its Members & Accepting Deposits From Members. The Return Of 2 Ala Service Co-Op. Bank Ltd. Income For Ay 2018-19 Was Filed On 28.12.2018 Claiming Deduction U/S. 80P Of The Income Tax Act, 1961 (The Act). Against The Said Return Of Income, The Assessment Was Completed By The National E- Assessment Centre (Hereinafter Called "The Ao") Vide Order Dated 15.04.2021 Passed U/S. 143(3) R.W.S. 143(3A) & 143(3B) Of The Act At A Total Income Of Rs. 72,95,927/-. While Doing So, The Ao Denied Deduction U/S. 80P In Respect Of Interest Income 72,95,927/- Derived From District Co-Operative Bank.

For Appellant: Shri Jojo, C.A., AdvocateFor Respondent: Smt. Leena Lal, Sr. D.R
Section 119BSection 139(1)Section 143(3)Section 80ASection 80P