Section 139(5) of the Income Tax Act

Income-tax Act, 2025: s.263

Section 139(5) 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(5) is CIT v. Yokogawa India Ltd. (391 ITR 274), cited in 290 of the 830 judgments on BharatTax that turn on this section.

Leading authorities on Section 139(5)

CIT v. Yokogawa India Ltd.
391 ITR 274 · 2017 · Supreme Court
290
citing judgments

Deduction under Section 10A or 10AA of the Income-tax Act is computed on the profits of the eligible unit without first setting off losses from other units or non-eligible units. Conversely, losses incurred by an eligible unit are allowed to be set off against the assessee's other taxable business profits.

Shree Balaji Alloys v. CIT
333 ITR 335 · 2011 · Reported
249
citing judgments
PCIT v. Wipro Ltd.
140 Taxmann.com 223 · 2022 · Supreme Court
192
citing judgments

Exemption provisions under Chapter III, such as Section 10B(8), must be interpreted strictly, and any claim for such exemptions must be made in the return of income. The principles governing Chapter III (incomes not forming part of total income) differ from those for Chapter VIA (deductions in computing total income).

DCIT v. Reliance Industries Ltd.
88 ITD 273 · 2004 · ITAT
169
citing judgments

Interest, sales tax, and purchase tax subsidies received by an assessee are generally considered capital receipts, not revenue income, for income tax purposes.

CIT v. Torrent Power Ltd.
354 ITR 630 · 2013 · High Court
166
citing judgments

If an assessee possesses sufficient interest-free own funds to cover investments yielding exempt income, it is presumed that such investments are made from these own funds, precluding any disallowance of interest expenditure under Section 14A, even when borrowed funds are also available.

Lissie Medical Institutions v. CIT
348 ITR 344 · 2012 · High Court
164
citing judgments

The Kerala High Court held that charitable institutions claiming exemption under Section 11 are not entitled to claim depreciation on assets used for charitable purposes, taking a view contrary to most other High Courts.

CIT v. ITI Ltd.
313 ITR 1 · 2009 · Supreme Court
142
citing judgments

An employer is not statutorily obligated to collect evidence from employees regarding the actual utilization of amounts paid towards leave travel concession or conveyance allowance, unless specific requirements are mandated by law or a CBDT circular.

CIT v. Chaphalkar Brothers
400 ITR 279 · 2018 · Supreme Court
136
citing judgments

A subsidy is classified as a capital receipt if its object is to enable the assessee to set up or expand a new or existing unit. Conversely, it is a revenue receipt if its purpose is to help the assessee run the business more profitably.

CIT v. Sitex Industries Ltd.
82 Taxmann.com 171 · 2017 · High Court
117
citing judgments

No disallowance for investments made out of surplus funds can be made if tax-free dividends are earned on such investments.

Chicago Pneumatic India Ltd. v. DCIT
15 SOT 252 · 2007 · ITAT
111
citing judgments

The Assessing Officer must grant the correct deduction after due verification of claims made by the assessee, even if not perfectly articulated initially. This principle applies in assessment proceedings, including those involving specific deductions like those for export-oriented units under Section 10B.

Judgments on Section 139(5)

DCIT, Kolkata vs. Pawanputra Advertising Private Limited, Kolkata

In the result, the appeals of the Revenue are dismissed and the COs of the assessee are allowed

ITSSA 1/KOL/2025[2016-17]Status: DisposedITAT Kolkata26 Aug 2025AY 2016-17

Bench: Shri Rajesh Kumar, Am & Shri Pradip Kumar Choubey, Jm It(Ss)A No. 144 & 145/Kol/2024 (Ays: 2019-20 & 2020-21) It(Ss)A No. 157,158,159/Kol/2024 (Ays: 2015-16, 2017-18 & 2018-19) It(Ss)A No. 1/Kol/2025 (Ays: 2016-17) Pawanputra Advertising Asst. Commissioner Of Income Private Limited 2Nd Floor, Room No.213, Diamond Tax, 110, Shantipally, Aaykar Bhavan, Poorva, Kolkata-700107 Prestige, 41A Acharya Jagdish Vs. West Bengal Chandra Bose Road, Kolkata-700017, West Bengal (Appellant) (Respondent) Pan No. Aaecp3568B Co Nos. 02 & 03/Kol/2025 (Arising In It(Ss)A No. 144 & 145/Kol/2025 For A.Ys. 2019-20 & 2020-21) Pawanputra Advertising Private Limited Asst. Commissioner Of Income 2Nd Floor, Room No.213, Diamond Tax, 110, Shantipally, Aaykar Prestige, 41A Acharya Jagdish Bhavan, Poorva, Kolkata-700107 Vs. Chandra Bose Road, West Bengal Kolkata-700017, West Bengal (Appellant) (Respondent) Assessee By : S/Shri Soumitra Choudhury& Pranabesh Sarkar & Krishna Kr. Chhaparia, Nirav Sheth, Ars Revenue By : Shri Sanat Kumar Raha, Dr Date Of Hearing: 30.07.2025 Date Of Pronouncement: 26.08.2025 It(Ss)A No. 144, 145, 157,158,159/Kol/2024 & 1/Kol/2025 A.Ys. 2015-16 To 2020-21; Pawanputra Advertising Private Limited O R D E R Per Rajesh Kumar, Am:

For Appellant: S/Shri Soumitra Choudhury&For Respondent: Shri Sanat Kumar Raha, DR
Section 132Section 139(5)Section 142(1)Section 143(2)Section 153ASection 68

A.C.I.T., CC - 3(3), Kolkata vs. Pawanputra Advertising Private Limited, Kolkata

In the result, the appeals of the Revenue are dismissed and the COs of the assessee are allowed

ITSSA 159/KOL/2024[2018-19]Status: DisposedITAT Kolkata26 Aug 2025AY 2018-19

Bench: Shri Rajesh Kumar, Am & Shri Pradip Kumar Choubey, Jm It(Ss)A No. 144 & 145/Kol/2024 (Ays: 2019-20 & 2020-21) It(Ss)A No. 157,158,159/Kol/2024 (Ays: 2015-16, 2017-18 & 2018-19) It(Ss)A No. 1/Kol/2025 (Ays: 2016-17) Pawanputra Advertising Asst. Commissioner Of Income Private Limited 2Nd Floor, Room No.213, Diamond Tax, 110, Shantipally, Aaykar Bhavan, Poorva, Kolkata-700107 Prestige, 41A Acharya Jagdish Vs. West Bengal Chandra Bose Road, Kolkata-700017, West Bengal (Appellant) (Respondent) Pan No. Aaecp3568B Co Nos. 02 & 03/Kol/2025 (Arising In It(Ss)A No. 144 & 145/Kol/2025 For A.Ys. 2019-20 & 2020-21) Pawanputra Advertising Private Limited Asst. Commissioner Of Income 2Nd Floor, Room No.213, Diamond Tax, 110, Shantipally, Aaykar Prestige, 41A Acharya Jagdish Bhavan, Poorva, Kolkata-700107 Vs. Chandra Bose Road, West Bengal Kolkata-700017, West Bengal (Appellant) (Respondent) Assessee By : S/Shri Soumitra Choudhury& Pranabesh Sarkar & Krishna Kr. Chhaparia, Nirav Sheth, Ars Revenue By : Shri Sanat Kumar Raha, Dr Date Of Hearing: 30.07.2025 Date Of Pronouncement: 26.08.2025 It(Ss)A No. 144, 145, 157,158,159/Kol/2024 & 1/Kol/2025 A.Ys. 2015-16 To 2020-21; Pawanputra Advertising Private Limited O R D E R Per Rajesh Kumar, Am:

For Appellant: S/Shri Soumitra Choudhury&For Respondent: Shri Sanat Kumar Raha, DR
Section 132Section 139(5)Section 142(1)Section 143(2)Section 153ASection 68

A.C.I.T., CC - 3(3), Kolkata vs. Pawanputra Advertising Private Limited, Kolkata

In the result, the appeals of the Revenue are dismissed and the COs of the assessee are allowed

ITSSA 158/KOL/2024[2017-18]Status: DisposedITAT Kolkata26 Aug 2025AY 2017-18

Bench: Shri Rajesh Kumar, Am & Shri Pradip Kumar Choubey, Jm It(Ss)A No. 144 & 145/Kol/2024 (Ays: 2019-20 & 2020-21) It(Ss)A No. 157,158,159/Kol/2024 (Ays: 2015-16, 2017-18 & 2018-19) It(Ss)A No. 1/Kol/2025 (Ays: 2016-17) Pawanputra Advertising Asst. Commissioner Of Income Private Limited 2Nd Floor, Room No.213, Diamond Tax, 110, Shantipally, Aaykar Bhavan, Poorva, Kolkata-700107 Prestige, 41A Acharya Jagdish Vs. West Bengal Chandra Bose Road, Kolkata-700017, West Bengal (Appellant) (Respondent) Pan No. Aaecp3568B Co Nos. 02 & 03/Kol/2025 (Arising In It(Ss)A No. 144 & 145/Kol/2025 For A.Ys. 2019-20 & 2020-21) Pawanputra Advertising Private Limited Asst. Commissioner Of Income 2Nd Floor, Room No.213, Diamond Tax, 110, Shantipally, Aaykar Prestige, 41A Acharya Jagdish Bhavan, Poorva, Kolkata-700107 Vs. Chandra Bose Road, West Bengal Kolkata-700017, West Bengal (Appellant) (Respondent) Assessee By : S/Shri Soumitra Choudhury& Pranabesh Sarkar & Krishna Kr. Chhaparia, Nirav Sheth, Ars Revenue By : Shri Sanat Kumar Raha, Dr Date Of Hearing: 30.07.2025 Date Of Pronouncement: 26.08.2025 It(Ss)A No. 144, 145, 157,158,159/Kol/2024 & 1/Kol/2025 A.Ys. 2015-16 To 2020-21; Pawanputra Advertising Private Limited O R D E R Per Rajesh Kumar, Am:

For Appellant: S/Shri Soumitra Choudhury&For Respondent: Shri Sanat Kumar Raha, DR
Section 132Section 139(5)Section 142(1)Section 143(2)Section 153ASection 68

A.C.I.T., CC - 3(3), Kolkata vs. Pawanputra Advertising Private Limited, Kolkata

In the result, the appeals of the Revenue are dismissed and the COs of the assessee are allowed

ITSSA 157/KOL/2024[2015-16]Status: DisposedITAT Kolkata26 Aug 2025AY 2015-16

Bench: Shri Rajesh Kumar, Am & Shri Pradip Kumar Choubey, Jm It(Ss)A No. 144 & 145/Kol/2024 (Ays: 2019-20 & 2020-21) It(Ss)A No. 157,158,159/Kol/2024 (Ays: 2015-16, 2017-18 & 2018-19) It(Ss)A No. 1/Kol/2025 (Ays: 2016-17) Pawanputra Advertising Asst. Commissioner Of Income Private Limited 2Nd Floor, Room No.213, Diamond Tax, 110, Shantipally, Aaykar Bhavan, Poorva, Kolkata-700107 Prestige, 41A Acharya Jagdish Vs. West Bengal Chandra Bose Road, Kolkata-700017, West Bengal (Appellant) (Respondent) Pan No. Aaecp3568B Co Nos. 02 & 03/Kol/2025 (Arising In It(Ss)A No. 144 & 145/Kol/2025 For A.Ys. 2019-20 & 2020-21) Pawanputra Advertising Private Limited Asst. Commissioner Of Income 2Nd Floor, Room No.213, Diamond Tax, 110, Shantipally, Aaykar Prestige, 41A Acharya Jagdish Bhavan, Poorva, Kolkata-700107 Vs. Chandra Bose Road, West Bengal Kolkata-700017, West Bengal (Appellant) (Respondent) Assessee By : S/Shri Soumitra Choudhury& Pranabesh Sarkar & Krishna Kr. Chhaparia, Nirav Sheth, Ars Revenue By : Shri Sanat Kumar Raha, Dr Date Of Hearing: 30.07.2025 Date Of Pronouncement: 26.08.2025 It(Ss)A No. 144, 145, 157,158,159/Kol/2024 & 1/Kol/2025 A.Ys. 2015-16 To 2020-21; Pawanputra Advertising Private Limited O R D E R Per Rajesh Kumar, Am:

For Appellant: S/Shri Soumitra Choudhury&For Respondent: Shri Sanat Kumar Raha, DR
Section 132Section 139(5)Section 142(1)Section 143(2)Section 153ASection 68

A.C.I.T., CC - 3(3), Kolkata vs. Pawanputra Advertising Private Limited, Kolkata

In the result, the appeals of the Revenue are dismissed and the COs of the assessee are allowed

ITSSA 145/KOL/2024[2020-21]Status: DisposedITAT Kolkata26 Aug 2025AY 2020-21

Bench: Shri Rajesh Kumar, Am & Shri Pradip Kumar Choubey, Jm It(Ss)A No. 144 & 145/Kol/2024 (Ays: 2019-20 & 2020-21) It(Ss)A No. 157,158,159/Kol/2024 (Ays: 2015-16, 2017-18 & 2018-19) It(Ss)A No. 1/Kol/2025 (Ays: 2016-17) Pawanputra Advertising Asst. Commissioner Of Income Private Limited 2Nd Floor, Room No.213, Diamond Tax, 110, Shantipally, Aaykar Bhavan, Poorva, Kolkata-700107 Prestige, 41A Acharya Jagdish Vs. West Bengal Chandra Bose Road, Kolkata-700017, West Bengal (Appellant) (Respondent) Pan No. Aaecp3568B Co Nos. 02 & 03/Kol/2025 (Arising In It(Ss)A No. 144 & 145/Kol/2025 For A.Ys. 2019-20 & 2020-21) Pawanputra Advertising Private Limited Asst. Commissioner Of Income 2Nd Floor, Room No.213, Diamond Tax, 110, Shantipally, Aaykar Prestige, 41A Acharya Jagdish Bhavan, Poorva, Kolkata-700107 Vs. Chandra Bose Road, West Bengal Kolkata-700017, West Bengal (Appellant) (Respondent) Assessee By : S/Shri Soumitra Choudhury& Pranabesh Sarkar & Krishna Kr. Chhaparia, Nirav Sheth, Ars Revenue By : Shri Sanat Kumar Raha, Dr Date Of Hearing: 30.07.2025 Date Of Pronouncement: 26.08.2025 It(Ss)A No. 144, 145, 157,158,159/Kol/2024 & 1/Kol/2025 A.Ys. 2015-16 To 2020-21; Pawanputra Advertising Private Limited O R D E R Per Rajesh Kumar, Am:

For Appellant: S/Shri Soumitra Choudhury&For Respondent: Shri Sanat Kumar Raha, DR
Section 132Section 139(5)Section 142(1)Section 143(2)Section 153ASection 68

A.C.I.T., CC - 3(3), Kolkata vs. Pawanputra Advertising Private Limited, Kolkata

In the result, the appeals of the Revenue are dismissed and the COs of the assessee are allowed

ITSSA 144/KOL/2024[2019-20]Status: DisposedITAT Kolkata26 Aug 2025AY 2019-20

Bench: Shri Rajesh Kumar, Am & Shri Pradip Kumar Choubey, Jm It(Ss)A No. 144 & 145/Kol/2024 (Ays: 2019-20 & 2020-21) It(Ss)A No. 157,158,159/Kol/2024 (Ays: 2015-16, 2017-18 & 2018-19) It(Ss)A No. 1/Kol/2025 (Ays: 2016-17) Pawanputra Advertising Asst. Commissioner Of Income Private Limited 2Nd Floor, Room No.213, Diamond Tax, 110, Shantipally, Aaykar Bhavan, Poorva, Kolkata-700107 Prestige, 41A Acharya Jagdish Vs. West Bengal Chandra Bose Road, Kolkata-700017, West Bengal (Appellant) (Respondent) Pan No. Aaecp3568B Co Nos. 02 & 03/Kol/2025 (Arising In It(Ss)A No. 144 & 145/Kol/2025 For A.Ys. 2019-20 & 2020-21) Pawanputra Advertising Private Limited Asst. Commissioner Of Income 2Nd Floor, Room No.213, Diamond Tax, 110, Shantipally, Aaykar Prestige, 41A Acharya Jagdish Bhavan, Poorva, Kolkata-700107 Vs. Chandra Bose Road, West Bengal Kolkata-700017, West Bengal (Appellant) (Respondent) Assessee By : S/Shri Soumitra Choudhury& Pranabesh Sarkar & Krishna Kr. Chhaparia, Nirav Sheth, Ars Revenue By : Shri Sanat Kumar Raha, Dr Date Of Hearing: 30.07.2025 Date Of Pronouncement: 26.08.2025 It(Ss)A No. 144, 145, 157,158,159/Kol/2024 & 1/Kol/2025 A.Ys. 2015-16 To 2020-21; Pawanputra Advertising Private Limited O R D E R Per Rajesh Kumar, Am:

For Appellant: S/Shri Soumitra Choudhury&For Respondent: Shri Sanat Kumar Raha, DR
Section 132Section 139(5)Section 142(1)Section 143(2)Section 153ASection 68