Law: Income Tax Act, 1961

Section: 139(4),(5),13(1)(c)

(a) Income-tax---Assessment---Limitation---Returns---Returns voluntarily filed under S.139(4)---Assessee not entitled to file revised returns---Limitation period of one year from date of revised return under S.153(1)(c) does not apply--¬Indian Income Tax Act, 1961, Ss.139(4), (5) & 13(1)(c). For the years 1964-65 and 1965-66, the assessee did not file his returns within the period prescribed by subsection (1) of section 139 of the Income Tax Act, 1961. No notice under subsection (2) of section 139 was also issued to him. The assessee filed returns for both the assessment years under subsection (4) of section 139. The assessee thereafter filed revised returns for the two assessment years, on January 18, 1969, and July 17, 1969, respectively, declaring the total income at figures lower than those declared in the original returns. The Income Tax Officer, by orders, dated January 15, 1990 and July 6, 1990, respectively, completed the assessments for the two assessment years in question, and also initiated penalty proceedings under section 271(1)(c) of the Income Tax Act. The High Court, on a reference, held that even in the case of a return filed under subsection (4) of section 139, a revised return was permissible, and that, therefore, the assessment orders in question must be deemed to have been made within the period of limitation of one year from the date of the revised return provided in clause (c) of subsection (1) of section 153 of the Act. The High Court also held that the larger period of eight years in cases of concealment of income, provided by clause (b) of subsection (1) of section 153, was also attracted in this case and that on this count also, the assessment orders must be held to have been made within the period of limitation prescribed by the Act. On appeal to the Supreme Court: Held, allowing the appeal, that no revised return can be filed under subsection (5) of section 139 in a case where the return is filed under section 139(4). Once this is so the revised returns filed by the assessee for both the said assessment years were invalid in law and could not have been treated and acted upon as revised returns contemplated by subsection (5) of…

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