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TMI Blog2024 (9) TMI 135X X X X Extracts X X X X X X X X Extracts X X X X ..... ls) has erred in upholding the disallowance of expenditure on interest paid on borrowed capital u/s 57 of the Income Tax Act. 2. That in view of facts and circumstances of the case and in law, the Ld. Commissioner of Income Tax (Appeals) has failed to note that the appellant, inadvertently, claimed deduction under the wrong head. 3. That in view of facts and circumstances of the case and in law, the Ld. Commissioner of Income Tax (Appeals) has misinterpreted Section 139(5) of the Income Tax Act in furtherance thereof had treated the revised return as infructuous. 4. That in view of facts and circumstances of the case and in law, the total addition of Rs. 27,47,508/- to the total income and consequent tax demand created at Rs. 12,63,69 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovisions of the Act. 3.2 In response thereof, non reply was filed by the assessee and thereafter the AO held that the silence on the part of the assessee is taken as his acceptance of the fault of claiming deduction under section 57 of the Act and accordingly the said deduction was disallowed and added to the taxable income in the hands of the assessee and as against the returned income of Rs. 13,11,290/-, the assessed income was determined at Rs. 40,58,798/- by making addition/disallowance of Rs. 27,47,508/- for the amount of deduction claimed under section 57 and brought to tax in the hands of the assessee. 4. Being aggrieved, the assessee carried the matter in appeal before the Ld. CIT(A). As per the Ld. CIT(A), the AO has rightly di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. The return filed was processed within the ambit of section 143(1) of the Act and the case of the assessee was selected for scrutiny u/s 143(3). During the assessment proceeding, notice u/s 143(2) was issued on 09/08/2018 Statutory notices u/s 142(1) of the Act along with questionnaire were also issued and asking for specific details. In response to statutory notices and questionnaire issued, the assessee has filed replied on Income Tax Portal. Addition on account of deduction claimed u/s 57 of the I.T. Act, 1961 under the head 'income from other sources': During the year, the assessee has filed ITR-2 showing his rental income, salary and Interest income from Partnership firm and Interest Income and wrongly claimed deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overs 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 the relevant assessment year or before the completion of the assessment, whichever is earlier. Whereas as per u/s 139(5) as stated above belated return filed u/s 139(4) can be revised at any time before expiry of one year from the end of relevant assessment year or before the completion of assessment, whichever is earlier. In our case assessee revised his original return filed before completition of assessment but assessing officer denied our submission merely on the basis that belated return filed u/s 139(4) cannot be revised u/s 139(5). Any mistake which is apparent can be rectified before the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion (4) of section 139 or any return furnished in response to notice issued under sub section (1) of Section 142, 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 the relevant assessment year or before the completion of the assessment whichever is earlier. It was submitted that both the AO as well as the Ld. CIT(A) have failed to take cognizance of the amendment which has been brought in by the Finance Act 2016 w.e.f A.Y. 2017-18 wherein even a belated return has been allowed to be revised. On merits, it was submitted that the assessee like to contest the findings of the ld CIT(A) as no opportunity was provided to the assessee before arriving at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de under section 57 while computing the income under the head "income from other sources" instead of claiming the same under the head "Business income", the return of income originally filed can be revised and has in fact been duly revised by the assessee within the stipulated time frame. 9. The revised return of income so filed therefore needs to be considered to examine the claim of deduction so made by the assessee. Given that the ld CIT(A) has decided the matter on merits of the case without affording an opportunity to the assessee and even during the course of hearing, we felt that all facts necessary for examining the claim of deduction need to be thrashed out, we deem it appropriate to set-aside the matter to the file of the ld CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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