Section 139(9) of the Income Tax Act
Income-tax Act, 2025: s.263
Section 139(9) 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(9) is CIT v. Merchant (280 CTR 381), cited in 68 of the 234 judgments on BharatTax that turn on this section.
Leading authorities on Section 139(9)
The scope of Section 43B and Section 36(1)(va) of the Income Tax Act are distinct, meaning they cannot be read together to determine an assessee's entitlement to a deduction for belatedly paid employee contributions.
Income is not taxable as Fees for Technical Services (FTS) if the services are not 'made available' to the recipient, according to the interpretation of Double Taxation Avoidance Agreements (DTAA). If a treaty lacks an FTS clause, income is taxable as business income only if a permanent establishment exists in India and the income is attributable to it.
Payment for transponder facility does not constitute royalty if it is not for a secret process and does not make technical knowledge available under a DTAA.
Evidence collected during an illegal search can still be used against the assessee. An assessment made based on such evidence is valid.
Payments for services are not taxable in India as Fees for Included Services (FIS) under a Double Taxation Avoidance Agreement (DTAA) if they do not make technical knowledge, know-how, or experience available to the Indian recipient.
Payments received for referring international clients to another entity do not constitute 'fees for technical services' if they do not involve rendering technical, managerial, or consultancy services. Such fees may be construed as commission income.
Gross receipts cannot be taxed as income, and expenses must be allowed accordingly, even if exemption under Section 11 is denied. Income should be assessed under 'Income from Other Sources' with deductions under Section 57.
An Assessing Officer is not justified in rejecting a claim for exemption under section 11 of the Income-tax Act. The ITAT has also held that an opportunity of being heard need not be afforded under section 139(9) in certain circumstances.
Assessments under section 143(3) and 144 have distinct and different consequences. An assessment under section 143(3) involves reviewing the income tax return and requesting evidence of income and expenditures.
