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In the NCLT lead demerger case @ 420 ITR 339 (SC) the revised return was not admitted beyond the prescribed time limit as set under section 139(5) of the Act. The Apex Court thus had to direct the department to admit the revised return as it found that section 119(2) (b) did not provide for any remedy in such cases.
Seeing such difficulties the Apex Court pointed out that 1) rules of procedure have been construed to be the handmaiden of justice and 2) the purpose of assessment proceedings is to assess the tax liability of an assessee correctly in accordance with law.
Yet again the Gujarat High Court encountered the same situation in [2022] 19 ITR-OL 155 (Guj) and reminded the department of such difficulties and held that when the revenue have geared up to operate in the regime of electronic and faceless mode for conducting all its operations including the filing of returns document, hearing and assessment, it shall need to improvise the software and closely examine the difficulties experienced by the taxpayers because of the limitation in the software which can easily be corrected to allow the revised return more particularly, when the law has been made quite clear by virtue of the direction of the apex court.
An enabling new section 170A has been inserted by Budget 2022 to grant additional 6 months for modifying the return by the successor under any scheme of reorganisation.

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