Law:

Section:

If computation of income does not tally with profit as per audited profit and loss account, return cannot be treated as defective under section 139(9) Section 139, read with section 143, of the Income-tax Act, 1961 - Return of income - Assessment year 1992-93 - Whether if computation of income does not tally with profit as per audited profit and loss account, return can be treated as defective under section 139(9) - Held, no - Whether Assessing Officer is bound to finalise assessment for assessment year in which return filed by assessee is treated as invalid return - Whether there is income or loss-and not to do so would be travesty of justice - Held, yes FACTS The petitioner-assessee filed the return of income for the relevant assess-ment year declaring loss, along with the audited profit and loss account, the balance sheet which was adopted at the annual general meeting and the audit report under section 44AB. The Assessing Officer issued a notice under section 139(9) proposing to treat the return as invalid if the defects in terms of clause (e) of the Explanation to section 139(9) were not removed within prescribed period. Subsequently, the Assessing Officer intimated that the return filed by the assessee was invalid because there were material differences between the income disclosed in the audited profit and loss account and the claim in the computation. On appeal, the Commissioner (Appeals) held that the appeal was not maintainable against intimation passed under section 139(9) and since the petitioner had not cured the defects in the returns as pointed out by the Assessing Officer, the action of the Assessing Officer treating the return filed as invalid was proper. The Tribunal also dismissed the second appeal filed by the petitioner. On writ : HELD The return filed by the petitioner contained all the documents set out in clause (e) of the Explanation to section 139(9). Since, all the documents set out in clause (e) were already annexed to the return, it could not be said that the return suffered from the defects set out in clause (e ). If the computation of income does not tally with the profit as per the audited profit and loss account, the return…

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