Court allows petition challenging non-acceptance of revised tax return. Order to process electronically within 2 weeks.

The Court allowed the petition challenging the non-acceptance of the revised return for Assessment Year 2018-19 under Section 129 of the Income Tax Act, 1961. The Court quashed the assessment order, directing the respondent to process the revised return filed by the petitioner, either electronically or by physical copy, within a minimum of two weeks. The Court emphasized the need for authorities to adapt to electronic operations and software improvements to facilitate the acceptance of revised returns in compliance with legal directives, especially in cases where delays are beyond the taxpayer's control.

---

---

Issues:
Challenging non-acceptance of revised return for Assessment Year 2018-19 under Section 129 of the Income Tax Act, 1961.

Analysis:
1. Facts Leading to the Petition:
The petitioner, a company involved in Oil and Gas services, demerged its business, and the scheme was sanctioned by the NCLT with an appointed date of 01.04.2017. The petitioner filed the original return for Assessment Year 2018-19 before the scheme was sanctioned. After the scheme's approval, the petitioner sought to file a revised return, but the time limit had lapsed, and there was no online mechanism available. Despite physically filing the revised return with an explanation, it was not processed by the respondent.

2. Arguments and Counter-Arguments:
The petitioner argued that the delay in filing the revised return was due to obtaining NCLT's sanction and relied on the decision in DALMIA POWER LIMITED case. The respondent contended that the revised return was filed manually, making it invalid as per Board Circular requiring electronic filing. The respondent also highlighted that the revised return was beyond the time limit set by the Act.

3. Court's Decision:
After considering the arguments, the Court found that the petitioner's inability to file the revised return electronically within the time frame was due to the NCLT's order. The Court emphasized that the filing of the revised return should have been permitted, especially after the NCLT's direction and the Apex Court's decision. The Court quashed the assessment order and directed the respondent to process the revised return filed by the petitioner, either electronically or by physical copy, granting a minimum of two weeks for compliance.

4. Final Remarks:
The Court highlighted the need for authorities to adapt to electronic and faceless operations to address taxpayer difficulties, especially in accepting revised returns. Emphasizing the importance of software improvements to prevent unnecessary litigation, the Court urged for prompt action in enhancing software capabilities to facilitate the acceptance of revised returns in line with legal directives.

In conclusion, the Court allowed the petition, setting aside the respondent's order and emphasizing the importance of accommodating revised returns within the statutory framework, especially in cases where delays are beyond the taxpayer's control.

---