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

Assam Infrastructure Financing Authority, Guwahati vs. The Deputy Commissioner of Income Tax, Circle - 2 (Exemption), Kolkata

The appeal of the assessee is allowed

ITA 1223/KOL/2024[2015-16]Status: DisposedITAT Kolkata22 Apr 2025AY 2015-16

Bench: Shri Sonjoy Sarma & Shri Sanjay Awasthii.T.A. No.1223/Kol/2024 Assessment Year: 2015-16 Assam Infrastructure Financing Authority……......………………....Appellant 3Rd Floor, Block F, Finance Department, Govt. Of Assam, Assam Sachivalaya, Assam – 781006. [Pan: Aacaa9405E] Vs. Dcit, Circle-2(Exemption), Kolkata......................................…..…..... Respondent Appearances By: Shri Ramesh Goeka, Ar, Appeared On Behalf Of The Appellant. Shri S. Datta, Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : April 17, 2025 Date Of Pronouncing The Order : April 22, 2025 आदेश / Order Per Sonjoy Sarma: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 31.03.2024 Of The National Faceless Appeal Centre [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. Brief Facts Of The Case Are That The Assessee Is A Society & Is Registered Under Indian Societies Act, 1860 Vide Certificate Dated 19.12.2009. The Society Was Incorporated With Cabinet Approval Of Govt. Of Assam Vide Notification No.Bw-10/2008/73 Dated 06.10.2009. The Society Is Registered U/S 12A Of The Act Vide Order For Provisional Registration Is Form 10Ac Issued By Income Tax Department On 06.04.2022 From The Period From A.Y 2022-23 To A.Y 2024-25. As Per The Memorandum Of Association, The Assessee Was Created For Implementation Of Major Infrastructure Projects In The State Of Assam.

Section 12ASection 139Section 143(2)Section 148Section 148ASection 250