Section 139 of the Income Tax Act

Income-tax Act, 2025: s.263

Section 139 of the Income-tax Act, 1961 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 is CIT v. Kelvinator of India Ltd. (320 ITR 561), cited in 1,673 of the 3,629 judgments on BharatTax that turn on this section.

Leading authorities on Section 139

CIT v. Kelvinator of India Ltd.
320 ITR 561 · 2010 · Supreme Court
1,673
citing judgments

An Assessing Officer cannot initiate reassessment proceedings under Section 147 of the Income Tax Act based on a mere change of opinion. Reassessment is permissible only when there is fresh tangible material leading to the belief of income escapement, not merely a review of existing facts.

CIT v. Sinhgad Technical Education Society
397 ITR 344 · 2017 · Supreme Court
1,589
citing judgments

For assessments under Section 153C, a notice is legally unsustainable if there is no incriminating material correlated to the specific assessment years for which reassessment is sought.

Hindustan Coca Cola Beverage Pvt. Ltd. v. CIT
293 ITR 226 · 2007 · Supreme Court
576
citing judgments

The deductor cannot be treated as an assessee-in-default under Section 201(1) if the deductee has already paid the tax or offered the impugned receipts in their return of income. However, interest under Section 201(1A) for delayed deposit of tax can still be levied up to the date of filing of the return of income by the deductee.

Phool Chand Bajrang Lal v. ITO
203 ITR 456 · 1993 · Supreme Court
396
citing judgments

Reassessment proceedings under Section 147 are valid even after a scrutiny assessment under Section 143(3), provided the Assessing Officer forms a reason to believe, based on definite, specific, and reliable information, that income escaped assessment due to the assessee's failure to fully and truly disclose material facts.

CIT v. Orient Craft Ltd.
354 ITR 536 · 2013 · High Court
366
citing judgments

Reassessment of income, especially after a summary assessment under Section 143(1), requires the Assessing Officer to possess fresh, tangible material to form a reason to believe that income has escaped assessment; a mere reappraisal of existing records or a change of opinion without new material is not permissible.

Commissioner of Income-Tax, Udaipur v. Udaipur Dugdh Utpadak Sahakari Sandh Ltd.
35 Taxmann.com 616 · 2013 · High Court
304
citing judgments

No disallowance can be made under Section 36(1)(va) or Section 43B for delayed payment of employee's contributions to ESI or PF if these amounts are deposited by the assessee on or before the due date for filing the return of income under Section 139(1). This aligns the treatment of employee contributions with employer contributions for allowability.

Canara Housing Development Co. v. DCIT
49 Taxmann.com 98 · 2014 · High Court
283
citing judgments

Proceedings under Section 153A of the Income Tax Act are not confined solely to incriminating material found during a search, and the Assessing Officer can assess total income for the relevant years.

State of West Bengal v. Kesoram Industries Limited
10 SCC 201 · 2004 · Supreme Court
279
citing judgments

A taxing statute must be interpreted strictly based on what is clearly expressed, without implying anything not stated or importing provisions to supply deficiencies. A person must clearly fall within the ambit of the charging section for tax to be levied.

Jai Steel (India) v. Asstt. CIT
36 Taxmann.com 523 · 2013 · High Court
267
citing judgments

An assessee cannot claim deductions or expenditures in a Section 153A assessment that were not claimed in the original completed assessment, even if documents were found during a search.

CIT v. Foramer France
264 ITR 566 · 2003 · Supreme Court
253
citing judgments

Reassessment proceedings initiated under Section 147 beyond four years from the end of the relevant assessment year are invalid unless the assessee failed to disclose fully and truly all material facts necessary for assessment. Without such failure, the notice issued under Section 148 is time-barred and without jurisdiction.

Judgments on Section 139

Beauty Impex (P) Ltd, Kolkata vs. ITO, Ward-9(1), Kolkata

In the result, the appeal of the assessee stands allowed

ITA 541/KOL/2021[2019-20]Status: DisposedITAT Kolkata26 May 2022AY 2019-20

Bench: Shri Manish Borad, Hon’Ble & Shri Sonjoy Sarma, Hon’Bleassessment Year: 2019-20 Beauty Impex Pvt. Ito, Ward-9(1), Kolkata Ltd. 21/5, Old Nimta Road, Vs. Barrackpur, North 24 Parganas – 700056. Pan: Aabcb 6201 C (Appellant) (Respondent) Present For: Appellant By : None Respondent By : Shri Gautam Mondal, Acit Date Of Hearing : 25.05.2022 Date Of Pronouncement : 26.05.2022 O R D E R Per Sonjoy Sarma: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 12.11.2021 Of The National Faceless Appeal Centre [Hereinafter Referred To As ‘Cit’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). The Assessee In This Appeal Has Taken The Following Grounds Of Appeal: “1. That On The Facts & In The Circumstances Of The Case, The Ld. Cit(Appeals) (Nfac) Has Erred In Law As Well As On Facts In Passing An Order U/S 250 By Dismissing The Appeal Against Disallowance Of Sum Of Rs. 23,61,241/- Being Contribution Of Employees’ Share Towards Esi, Pf, Superannuation Fund Or Any Other Fund Set Up For The Welfare Of The Employee U/S 36(1)(Va) Read With Section 2(24)(X) Of The Income Tax Act, 1961 When The Payments Were Made Within The Due Dates Of Filing Of Return U/S 139 Of The Income Tax Act, 1961 & Hence Are Allowable. 2. For That The Appellant Craves Leave To Supplement, Cancel Or Otherwise Modify Any Of The Above Grounds Before Or At The Time Of Hearing.”

For Appellant: NoneFor Respondent: Shri Gautam Mondal, ACIT
Section 139Section 139(1)Section 2(24)(x)Section 250Section 36(1)(va)Section 43B

Kamal Kishore Jaiswal, Dehradun vs. ACIT, Dehradun

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 991/DEL/2017[2007-08]Status: DisposedITAT Dehradun27 Apr 2022AY 2007-08

Bench: Dr. B. R. R. Kumar & Sh. Yogesh Kumar U.S.Assessment Year: 2007-08 Kamal Kishore Jaiswal, Vs Asst. Commissioner Of Income Tax, 23/25, Pritam Road, Central Circle, Dalanwala, Dehradun. Dehradun. (Appellant) (Respondent) Pan No. Acdpk1166C Assessee By : None Revenue By : Sh. N.S. Jangpangi, Cit-Dr Date Of Hearing: 25.04.2022 Date Of Pronouncement: 27.04.2022 Order Per Yogesh Kumar U.S.: This Appeal Has Been Filed By The Assessee Against The Order Of The Ld. Cit(A)-Iv, Kanpur Dated 16.01.2017. 2. Brief Facts Of The Case Are That, During The Year Under Consideration, The Assesse Had Sold Plot On Which Long Term Capital Gain (Ltcg)Of Rs.22,62,367/- Has Been Declared In His Return Of Income Filed Under Section 139 Of The Act. Out Of Ltcg, Rs.13,95,000/- Has Been Claimed Exempt Under Section 54F Of The Act, Which Was Invested In The Purchase Of Residential House Property Amounting To Rs.38,95,000/- At Pritam Road, Dehradun. A Loan Amount Of Rs.25 Lakh Had Been Availed From Hdfc Bank For Purchase Of The Said Property. The Balance Amount Of Rs.8,67,367/- As Capital Gain Was Offered To Tax. At The Time Of 2 Kamal Kishore Jaiswal Filing Return Under Section 153A Of The Act, The Assessee Claimed Entire Amount Of Long Term Capital Gain Exempt Under Section 54F Act, Therefore, A Show Cause Notice Has Been Issued To The Assesse & A Reply Has Been Submitted By The Assesse On 05.02.2013 In The Following Manner:

For Appellant: NoneFor Respondent: Sh. N.S. Jangpangi, CIT-DR
Section 139Section 147Section 153ASection 217(1)(c)Section 54F