Revised return with audit report must be processed on merits, with assessment carried forward in accordance with law.

A revised return filed with audited accounts and the audit report under Section 44AB was required to be taken forward for assessment in accordance with law. The assessment year was covered by an earlier High Court decision, and the return was to be processed expeditiously by the Assessing Officer on its own merits while preserving all just exceptions available to the assessee. The matter therefore proceeded further for consideration, and the revised return received merits-based examination.

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Issues: Whether the revised return filed by the assessee for assessment year 1988-1989, along with audited accounts and the audit report under Section 44AB of the Income-tax Act, 1961, was required to be taken forward and assessed in accordance with law.

Analysis: The assessment year in question was covered by the earlier High Court decision, and the revised return accompanied by the audited accounts and audit report was held to require further processing. The assessment was to be carried forward by the Assessing Officer expeditiously and decided on its own merits in accordance with law, while preserving all just exceptions available to the assessee.

Conclusion: The matter was directed to proceed further before the Assessing Officer, and the assessee obtained the benefit of consideration of the revised return on merits.

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