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2023 (11) TMI 643 - ITAT PUNEValidity of revised return u/s 139(5) - Revision of belated return filed u/s 139(4) - Denial of benefit of exemption u/s 54F claimed in the revised return - assessee case selected for Limited Scrutiny under CASS - assessee had neither offered any income from Capital gain nor claimed any deduction/exemption under this head in the original return but only in revised return - HELD THAT:- It was only in the revised return that the assessee offered income from long term capital gain after claiming exemption u/s. 54F. This shows that the return taken up for scrutiny was the revised return and not the original one. From para 1 of the notice u/s. 143(2), it is clear that it refers to the deduction claimed under the head `Capital gains’, which was claimed in the revised return filed u/s. 139(5). It thus become palpable that the revised return was considered for selection of the case under CASS and the notice u/s. 143(2) was also issued with reference to the revised return only. Revised return did not conform to the prescription of section 139(5), before its substitution w.e.f. A.Y. 2017-18, which provided for revision of a return filed u/s. 139(1) and not u/s. 139(4) of the Act. The substituted section 139(5) now liberalizes the revision of return originally filed under sub-section (1) or under sub-section (4). The amendment has come into vogue from the A.Y. 2017-18. The assessment year under consideration is 2015-16. It is the pre-substituted provision which will prevail for the year under consideration, debarring the revision of any return filed u/s. 139(4). Since the revised belated return filed on 11-02-2016 was an invalid one, the same could not have been acted upon for the assessment. Once the invalid return is excluded from consideration, what survives is the valid return filed by the assessee u/s. 139(4) on 11-09-2015. The assessment could have been taken place only with reference to such return filed u/s. 139(4) and not the invalid return filed by the assessee. The selection of the case under Limited Scrutiny under CASS on the basis of the invalid return and thereafter the issuance of jurisdictional notice u/s. 143(2) also qua such invalid return can have no consequence except the passing of an illegal assessment order. We, therefore, vacate the assessment order and the consequential proceedings flowing therefrom. Assessee appeal is allowed.
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