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2012 (11) TMI 163 - ITAT MUMBAIValidity of revised returns u/s 139(5) - condition no. (ii) of sec. 139(5) discovery of any omission or any wrong statement - whether there was any wrong statement made in the original return of which the assessee was not aware at the time of filing the same. - Held that:- such examination of the assessee's claim on merit only will reveal as to whether the condition No. (ii) was satisfied in the present case in order to enable the assessee to furnish the revised return u/s 139(5). No income can be said to have really accrued to the assessee as a result of the five relevant transactions in the immovable properties which is chargeable to tax in its hands for the year under consideration. The declaration of such income, which was not accrued to the assessee in the real sense in the original return thus represented a wrong statement which was corrected by the assessee by filing the revised return and the AO as well as the learned CIT(Appeals), in our opinion, was not justified in bringing to tax such hypothetical income in the hands of the assessee company on the basis of original return of income ignoring the revised return filed by the assesse It is well settled that when a revised return is filed by the assessee, the original return is totally substituted and the revised return alone has to be taken into consideration in completing the assessment. The earlier return, after a revised return has been furnished, cannot form the basis of assessment. - In favor of assessee. Deemed income u/s 41(1) - Principal amount under Scheme of OTS waived - addition to income - Held that:- As decided in Solid Containers Ltd. vs. DCIT [2008 (8) TMI 156 - BOMBAY HIGH COURT] that although the loan was taken by the assessee for trading activity but upon waiver, the said loan was returned by the assessee in the business and the same, therefore, was taxable in its hands as income - against assessee.
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