Assessee's revised return prevails in assessment, highlighting need for fair consideration

The Tribunal allowed the assessee's appeal for statistical purposes, emphasizing the importance of considering a revised return of income in assessment proceedings. The Tribunal held that the original return was effaced by the revised return filed by the assessee, and the Assessing Officer erred in not considering the revised return before passing the assessment order. The assessment was remanded back to the AO for a de novo assessment, with directions to consider the revised return of income to ensure a fair assessment process.

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Issues:
1. Consideration of revised return of income filed by the assessee.
2. Validity of assessment order passed without considering the revised return.

Issue 1: Consideration of revised return of income filed by the assessee
The appellant, an assessee, filed an appeal against the order of the Commissioner of Income Tax for the assessment year 2013-14. The main contention was that the revised return of income filed by the assessee on 19.03.2015 was not taken into account by the Assessing Officer (AO) before passing the assessment order under section 143(3) of the Income Tax Act on 27.03.2015. The AO noted that despite various notices, the assessee did not appear before him, and the assessment was getting time-barred. The AO made additions to the income of the assessee based on un-served notices and issued a show-cause notice. The assessee appealed to the CIT(A) who partly allowed the appeal. The appellant argued that the AO should have considered the revised return filed by the assessee, citing a Karnataka High Court decision that a valid revised return effaces the original return for assessment purposes.

Issue 2: Validity of assessment order passed without considering the revised return
The CIT-DR for the department expressed doubt about whether the original return was filed before the due date but later confirmed that the original return was filed on 29.09.2013. The revised return filed on 19.03.2015 was acknowledged by the CIT(A). Referring to the Karnataka High Court judgment, the Tribunal held that the revised return filed by the assessee effaced the original return. The Tribunal found that the AO erred in not considering the revised return before passing the assessment order on 27.03.2015. Consequently, the Tribunal set aside the CIT(A)'s order and remanded the assessment back to the AO for a de novo assessment, emphasizing that the assessee should be given a fair opportunity during the assessment proceedings. The Tribunal directed the AO to consider the revised return of income while framing the assessment.

In conclusion, the appeal of the assessee was allowed for statistical purposes, and the Tribunal emphasized the importance of considering a revised return of income in assessment proceedings to ensure a fair and accurate assessment.

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