TMI Blog2022 (12) TMI 884X X X X Extracts X X X X X X X X Extracts X X X X ..... termination of taxable income is to be made on the basis of revised return. In none of the cases, it has been propounded that 143(2) notice was must on the revised return, otherwise whole assessment proceeding would vitiate. Let us explain the situation in a different manner also. Section 139(5) authorizes the assessee to file the return before completion of the assessment order. In the present case, assessment order has been passed on 18.03.2016. Hearing must have been concluded 2-3 days prior to this date because AO has to draft the assessment order. On 17th March, assessee filed a revised return without the knowledge of the AO because such return in A.Y. 2013-14 would be filed at the receipt counter. Can assessment order would be declared nullity for not issuing 143(2) notice on such return, because it is quite impossible at the end of the ld. Assessing Officer to take cognizance of such a fact in such a short period of time. This type of step can be taken at the end of an assessee for frustrating the whole assessment machinery. Yes, once a revised return is being filed, certainly its figure can be taken into consideration as propounded in the various decisions cited by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed and served upon the assessee on 04.09.2014. The ld. Assessing Officer has passed a scrutiny assessment order on 18.03.2016 under section 143(3). According to the assessee, it has revised its return on 23.02.2015 and cognizance of this return was not taken by the ld. Assessing Officer. Therefore, dissatisfied with the assessment order, the assessee carried the matter in appeal before the ld. 1st Appellate Authority. The assessee submitted that since it has revised its return within the time limit available under section 139(5), therefore, whatever claim it has made in the original return stands withdrawn. The assessment ought to have been passed on the basis of revised return. For buttressing its contention, it has relied upon four decisions, which have been noticed by the ld. 1st Appellate Authority and we are taking cognizance of them while taking note of the finding of the ld. CIT(Appeals). The ld. CIT(Appeals) found that revised return was filed within the time limit. The ld. CIT(Appeals) thereafter recorded a finding that ld. Assessing Officer should have issued a notice under section 143(2) on the revised return. Since he failed to take cognizance of the revised return, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tural consequence is that the earlier return would be effaced or obliterated for all purposes under the Act. It is not open for the AO to advert to the original return or the statements filed along with the original return. Only the revised return has to be taken into account for the purposes of making the assessment. This point of view had been held in the following cases:- (i) CIT vs.- Rana Polycot Ltd. (2012) 347 ITR 466 (P H); (ii) CCIT vs.- Machine Tools Corpn. Of India (1993) 201 ITR 101 (Karnataka); (iii) Beco Engineering Co. Ltd. vs. VIT (1984) 148 ITR 478 (P H); (iv) CIT vs.- Mangalore Chemicals Fertilizers Ltd.(1991) 191 ITR 156 (Karnataka). In the case of Pr. CIT-1-vs.- Babubghai Ramanbhai Patel (2017) 84 taxmann.com 32 (Guj), it was held that once a revised return is filed within the prescribed time, the original return did not survived and that allowance claimed in the revised return had to be allowed. In the case of Machine Tools Corpn of India Ltd. (supra), it was held that once a revised return is filed, the original return is substituted by the revised return and that it was not open for the AO to advert to the original return. The de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. Assessing Officer or by the ld. 1st Appellate Authority, but it is not a fatal injury on the proceedings as a whole where assessment order is to be quashed. 5. On the other hand, ld. Counsel for the assessee on the strength of following decisions:- (i) CIT vs.- Rana Polycot Ltd. (2012) 347 ITR 466 (P H); (ii) CCIT vs.- Machine Tools Corpn. Of India (1993) 201 ITR 101 (Karnataka); (iii) Beco Engineering Co. Ltd. vs. VIT (1984) 148 ITR 478 (P H); (iv) CIT vs.- Mangalore Chemicals Fertilizers Ltd.(1991) 191 ITR 156 (Karnataka), contended that once a valid revised return is being filed meaning thereby earlier return has no legs to stand. All consequential proceedings have to be taken by the ld. Assessing Officer on the basis of the revised return. Thus ld. CIT(Appeals) has rightly quashed the assessment order. 6. We have duly considered the rival contentions and gone through the record carefully. We are of the view that section 143(2) has a direct bearing on the controversy. Therefore, it is salutary upon us to take note the relevant part of this section, which reads as under:- 143(2): 50. Substituted by the Finance Act, 2016, w.e.f. 1.6.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the proviso to this section. 8. The second compartment of this section is that it provides an opportunity to an assessee as to what it wants to submit in support of the claim made in a return. The Hon ble Courts are unanimous on the points that if no such notice is issued within the time limit, then assessment proceedings would be void ab initio. However, the situation in the present case is altogether different. A valid return was filed by the assessee under section 139(1) on 26.09.2013. Within the time limit available under section 143(2), a notice was issued to the assessee under this section inviting it to submit any evidence in support of its return of income. In other words, the assessment proceedings were set into motion. Now section 139(5) provides two situations to an assessee for revising its return of income, namely if an assessee after furnishing the return under section 139(1) or in response to notice under section 142(1) discovers any omission or any wrong statement therein, he may furnish a revised return at any time before the expiry of one year from the end of relevant assessment year or before the completion of the assessment, whichever is earlier. The asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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