TMI Blog2006 (7) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... d, as the same was disallowed during the previous year. In view of this, income had escaped assessment within the meaning of Section 147 of the Act. Hence, notice under section 148 of the Act was issued and assessment was completed under section 147 of the Act, which resulted in profit. Since the assessee had not filed Form 10CCAC, which ought to have been filed along with the return, to claim deduction under Section 80HHC, as he claimed only loss in his original return, the assessee claimed deduction under section 80HHC based on the audit report by filing Form 10CCAC. But, the assessing officer, by order dated 30.3.99, did not allow the assessee to file a report for its claim of deduction under section 80HHC. 5. Aggrieved by the said order of the assessing officer dated 30.3.99, the assessee preferred an appeal before the Commissioner of Income-tax (Appeals). Before the Commissioner, the assessee sought permission to claim deduction under section 80HH based on the audit report by filing Form 10CCAC, which sought to have been filed along with the return. As the assessee did not file the audit report along with the return, the Commissioner of Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notional interest on borrowed funds diverted to sister concerns. However, strong objections have been taken by the learned senior standing counsel as to the remittance of the matter with regard to the claim of deduction by the assessee under section 80HHC to re-examine the same after taking into consideration the audit report in Form 10CCAC filed by the assessee. 9. In the order of the Tribunal, it is observed that the assessee did not file Form 10CCAC for grant of deduction under Section 80HHC along with its original return, as per which the assessee had shown only a loss. But the assessee stating that the Assessing Officer re-computed the income, which resulted in profit, requested the Commissioner of Income-tax (Appeals) for deduction under section 80HHC by filing the audit report in Form 10CCAC. Even though the Commissioner rejected the same, appreciating the explanation offered by the assessee, the Tribunal allowed the appeal filed by the assessee and also directed the assessing officer to re-examine the issue after considering the Form 10CCAC filed by the assessee for the purpose of claiming deduction under section 80HHC. 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of this Act, the return shall be treated as an invalid return and the provisions of this Act shall apply as if the assessee had failed to furnish the return. 12. On going through the above provisions under the Act, we find that section 139(5) of the Act enables the assessee, who, having furnished a return under section 139(1) or in pursuance of a notice issued under section 142(1), discovers any omission any wrong statement therein, to furnish a revised return at any point of time before the expiry of one year from the end of the assessment year or before the completion of the assessment, whichever is earlier and section 139(9) of the Act provides that where the Assessing Officer considers the return of income furnished by the assessee as defective, he may intimate the defect to the assessee and give him an opportunity to rectify the defect within a period of fifteen days from the date of such intimation. 13. It is a settled law that while construing provisions of statute, apparent inconsistency of those provisions with the provisions of another related statute should be harmonised and reconciled in the light of the object and purpose o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [1992] 195 ITR 825, wherein the Calcutta High Court held as follows:- "Sub-section (5) of section 139 of the Income-tax Act, 1961, enables an assessee to file a revised return and sub-section (9) of section 139 empowers the Assessing Officer to intimate defects in the return to the assessee giving him an opportunity to rectify them. The Assessing Officer has power to ask the assessee to remove all defects in the return other than the defects making the return invalid. The defects specified in sub-section (9) of section 139 are illustrative and not exhaustive. The object of sub-sections (5) and (9) of section 139 is to get removed and rectified all defects and omissions in the return filed, whether they are discovered by the assessee or by the Assessing Officer. Both the provisions are enabling provisions inserted to facilitate reflection of correct income in the return and assessment thereof. These provisions can be simultaneously applied. If the object of sub-section (5) of section 139 is to rectify a wrong or omission in the return, then any act through which such rectification is carried can be treated as revising the return if, in substance and in effect, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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