Category Archives: Return

Revised return deadline

Under the Income tax law a revised return can be furnished at any time before expiry of one year from the end of the relevant assessment year or the completion of assessment, whichever is earlier. As assessments are seldom made earlier than the one year period the one year deadline find more relevant. For instance for the return furnished for A Y 2010-11the deadline for revision is to end in March 2012. After the Supreme Court ruling in Goetze case the assessee is prevented from making any fresh claims by way of revision of return beyond one year deadline.

The Orissa High Court decision in Orissa Rural Housing Development Corporation Ltd. vs. Ass CIT (2012) 66DTR73 is a reminder to all assessee’s to push forward their fresh claims or amendments or corrections by way of filing of revised return before end of deadline. In a further statement the Court held that to hold such claim valid it is further desirable that the omission or wrong statement in the original return must be due to a bona fide inadvertence or mistake on the part of the assessee.

In this case the assessee filed original return on accrual basis. Later during assessment proceedings it came up with revised statement of income following cash basis. The High Court held that:

1) this kind of revision is not possible even by filing a revised return unless accounts are also revised; &

2) further any amendments or corrections are possible only if the return is revised.

Save Water
2.7bn the no of people who will face severe water shortages by 2025 if consumption continues at current rates. An estimated 1.8 bn people will live in areas plagued by water scarcity and 36 countries with 1.4 bn people are projected to be either freshwater scarce or cropland scarce.

Source: UN

Post No. - 26

2001 Amendment clarificatory in nature S. 234B & C

The Kerala High Court in Seapearl Enterprises v. Dy. CIT (2006) 155TAX483 held that amendment made to Explanation to sections 234A & 234B by the Finance Act, 2001 with retrospective effect from 1.4.1989 is clarificatory in nature and will hold good even for the period prior to such date.

Post No. - 25

Books etc. in Explanation I does not mean return enclosures

In a evolutionally decision of the Mumbai Tribunal in Otis Elevator Co. (India) Ltd. v. Dy. CIT (2007) 159TAX AT 128 it is held that the revenue cannot take shelter of Explanation I to section 147, if some information is disclosed by the assessee in its trading account, profit and loss account and balance sheet , which have been filed along with the return. Production of books of account or other evidence as per Explanation I, cannot be held to include the documents, which an assessee is obliged to file along with the return as per the statutory provisions of law.

Post No. - 24

Change in opening written down value Sec 154

The Kerala High Court in Smt. R Lakshami, S T Reddiar & Sons v. Dy CIT (2006) 156TAX297 held that every change in opening written down value shall be a cause for action u/s 154 at the instance of the A O to give consequential effect in the allowance of depreciation from year to year no matter the assessee had not made such claim in the return firnished

Post No. - 23

Default in furnishing of return

Following the Delhi High Court ruling of DR. PRANNOY ROY v. CIT (2002) 254ITR755/121TAX314 the Mumbai Tribunal in MILAN ENTERPRISES (2005) 95ITD18 held that the levy of interest u/s 234A is not possible where tax is already deposited by the assessee and