Law:

Section:

Section 139(5) of the income-tax act, 1961-Return of income-Revised return-Assessee filed original return showing income computed on mercantile system of accounting-After a year a revised return was filed recomputing income by changing system of accounting to cash-Whether revised return was valid return under section 139(5)-Held, no Facts For the assessment year 1978-79, the assessee filed the return of income on 18-9-1978 in the status as individual, showing a net profit of Rs. 57,990. The statement of accounted balance sheet filed along with the return showed the method of accounting as mercantile. On 6-10-1979, the assessee filed a revised return in the status of a firm showing an income of Rs. 19,048 recomputed by changing the method of accounting to cash system. The ITO did not accept the revised return on the ground that the assessee could not be permitted to rewrite the accounts by changing the system from mercantile to cash. The ITO's decision was upheld by the AAC. The assessee's second appeal was also rejected by the Tribunal, which held that the return could not be treated as a valid return under section 139(5). On reference: Held Section 139(5) clearly enacts that when a person who has filed a return under sub-section (1) or subsection (2) discovers any omission or wrong statement made in the return filed, it is only in those circumstances that he is permitted to file a revised return. In the instant case, the assessee had neither omitted to mention something nor made any wrong statement. Therefore, the return filed under section 139(5) was not a valid return. MISC. CIVIL CASE NO. 99 OF 1983. G.M. Chafekar for the Applicant. R.C. Mukati for the Respondent. JUDGMENT OZA, ACTG. CJ.-This is a reference made by the Tribunal for answering the following questions: "1. Whether on the facts and in the circumstances of the case and the material on record, the Tribunal was correct in law in holding that the return under section 139(5) is not a valid return? 2. Whether, on the facts and in the circumstances of the case and the material on record, the Tribunal was correct in law in ignoring the return under section 139(5) as a return under section 139(4) as in…

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