Law: Income Tax Act, 1961

Section: 139

Income-tax---Return---Defects in return---Rectification of defects---Scope of sub¬section (9) of S.139---Power to treat defective return as invalid---Power can be exercised only after assessment for year to which return relates is completed or time for such completion expires---Return submitted by public sector company not accompanied by audit report---Failure due to delay by Central Government in appointing auditor ---Assessee applying for extension of time up to 31-5-1996, for filing audit report---Revised return along-with audit report filed on 25-9-1996---Orders refusing acceptance of return, rejecting revision petition and issuing notice for reassessment---Application of assessee should have been considered as a petition under proviso to S.139(9)---Assessment proceeding pending when revised return was filed--¬Orders of Income-tax Authorities rejecting return and revision petition were not valid---Notice for reassessment was not valid---Indian Income Tax Act, 1961,S.139. Subsection (9) of section 139 of the Income Tax Act, 1961, obliges the Assessing Officer to intimate the assessee the defect, if any, noted in the return. This is for the purpose of affording an opportunity to the .assessee to cure the said defects. The minimum period to be granted for the said purpose is fifteen days but if an application is made by the assessee requiring more time the assessing authority is given power to grant further time. If the assessee does not cure the defect within the time allowed by the assessing authority then notwithstanding any other provision of the Act the return shall be treated as an invalid return and all the consequences of, not filing the return will follow. But it must be noted that this is subject to a rider which is mentioned in the proviso. It clearly says that if the assessee rectifies the defect beyond the time allowed by the Assessing Officer but before the assessment is made the Assessing Officer may condone the delay and treat the return as a valid return. From the above it is amply clear that the question of treating the defective return as invalid and visiting the assessee with consequences of not filing the return will arise only after the…

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