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2022 (11) TMI 182 - AT - Income TaxRevision u/s 263 by CIT - assessment order arises out of the original return of income, which was processed u/s 143(1) - revised return filed u/s 139(5) - admittedly, the assessment order arises out of the original return of income, which was processed u/s 143(1) of the assessment order - HELD THAT:- The undisputed facts are that the assessee had filed original return on 06.09.2017, which was processed on 26.11.2018 u/s 143(1) and the same culminated in an assessment u/s 143(3) on 28.11.2019. An admitted fact that the assessee had filed revised return on 07.03.2019. In the instant case, admittedly, the PCIT is seeking to revise the assessment completed u/s 143(3) which stems from the return of income filed u/s 139(1) - For doing so, PCIT states that the revised return of income has been filed beyond the time limit prescribed u/s 139(5) and the same is non est. This statement of the PCIT in the impugned order dated 30.03.2022 is factually incorrect. The revised return filed u/s 139(5) of the I.T.Act dated 07.03.2019 is well within the time limited prescribed and the same is not non est. In the case of CIT v. Mangalore Chemicals & Fertilizers Limited [1991 (1) TMI 70 - KARNATAKA HIGH COURT] had held that when the assessee files a valid revised return, it completely effaces and obliterates the original return, and therefore, it is only the revised return that has to be taken into account for the purpose of assessment. Since the assessee in the instant case has filed a valid revised return u/s 139(5) which effaces the return filed u/s 139(1) of the I.T.Act, the assessment order ought to have been completed from the figures disclosed in the revised return. In the instant case, admittedly, the assessment order arises out of the original return of income, which was processed u/s 143(1) of the assessment order dated 28.11.2019. Therefore, the said assessment order is bad in law. PCIT’s order to revise the said assessment order u/s 263 is also bad in law. Hence, we set aside the impugned order of the PCIT passed u/s 263 - Appeal filed by the assessee is allowed.
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