Revised return limitation under the Income-tax Act failed where a belated return could not extend assessment time.

A return filed after the time prescribed under section 139(1), and not in response to notice under section 139(2), could not be treated as a valid revised return under section 139(5). On that basis, the subsequent return dated 12 March 1985 did not extend the limitation for assessment under section 153(1)(c). The later Supreme Court view, which held that a return under section 139(4) is not revisable under section 139(5), displaced the earlier Tribunal approach permitting such revision. The limitation question was therefore answered in favour of the assessee, and the assessment could not be justified as time-barred by reference to the later return.

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Issues: Whether the return filed by the assessee on 12 March 1985 could be treated as a valid return under section 139(4) of the Income-tax Act, 1961, and whether the assessment completed within one year of that return was within limitation under section 153(1)(c) of the Income-tax Act, 1961.

Analysis: The assessment year was 1982-83. The first return had been filed beyond the time prescribed under section 139(1) and was not pursuant to notice under section 139(2). In view of the Supreme Court decision holding that a return filed under section 139(4) cannot be revised under section 139(5), the subsequent return could not be treated as a valid revised return so as to attract section 153(1)(c). The Tribunal's reliance on the earlier view permitting such revision was not sustainable after the later binding decision.

Conclusion: The question was answered in the negative and in favour of the assessee. The return filed on 12 March 1985 could not validly extend the limitation under section 153(1)(c) on the footing of a revised return.

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