Law: Income Tax Act, 1961

Section: 140,154,292B

Income-tax---Return---Company---Rectification of mistakes---Return of company not signe person mentioned in S.140---Defect curable under S.292-B---Rectification proceedings under S.154 to declare return non est are not valid---Indian Income Tax Act, 1961, Ss. 140, 154 & 292-B. A return can be signed and verified only as provided for, in section 140(c) of the Income Tax Act, 1961. In the case of a company, a return under section 139 is to be signed and verified as per section 140(c) between April 1, 1962, and March 31, 1976, by the principal officer. With effect from April 1, 1976, in, the case of a company, the return is to, be signed and verified by the Managing Director himself or where for any unavoidable reason such Managing Director is not able to sign and verify the return or where there is no Managing Director, by any Director thereof. It is well-settled that if, a statute provides for a thing to be done in a particular manner, then it is to be done in that manner and in no other manner. Section 292B provides that no return of income shall be invalid or shall be deemed to be invalid merely by reason of any mistake, defect or omission in such return of income if it is in substance and effect in conformity with, or according to the intent and purposes of the Act. Section 139 also throws some light on the question. If there is any defect, the Assessing Officer is required to give an opportunity to the assessee to rectify the defect within a stipulated time. Return was filed on July 27, 1988, by the assessee, a public limited company. The said return was signed by a person not named under section 140 of the Act in relation to "company". Notice was issued under section 154 of the Act to the assessee stating that since its return was not signed by the person permitted to sign it in terms of section 140(c) of the Act, the return was non est, and all proceedings taken on the basis of that return were void ab initio. Such notice was issued for the years 1988-89 and 1989-90. The assessee filed its objection stating that the return was filed by a person who was authority to do so on the basis of a power of attorney. The Assessing Officer did not accept the…

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