Revised income tax returns required before closure of Capital Gain Deposit Scheme account; final orders to follow promptly.

The court required the petitioner to file revised income tax returns for assessment year 2018-19 in response to the Section 148 notice, since the capital gains issue formed part of the assessment proceedings. Once those returns were filed before the competent authority, the respondents were to take up the matter and pass final orders for closure of the Capital Gain Deposit Scheme account in accordance with law and with expedition. The petitioner was also permitted to file the revised returns physically if required.

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Issues: Whether the petitioner should be required to file revised income tax returns for assessment year 2018-19 before the respondent authority, and thereafter the respondents should pass final orders for closure of the Capital Gain Deposit Scheme account.

Analysis: The dispute arose from the respondents' stand that the closure of the account could not be finalised unless the petitioner complied with the notice issued under Section 148 of the Income-tax Act, 1961, and filed revised returns incorporating the property transaction. The Court noted that the capital gain question formed part of the assessment proceedings for assessment year 2018-19 and accepted the respondents' position that the petitioner should place the revised returns before the concerned authority, with liberty to do so physically if required. The Court further directed that, once such returns were filed, the respondents should take up the matter for final closure of the account in accordance with law and with expedition.

Conclusion: The petitioner was directed to file revised income tax returns for assessment year 2018-19, and the respondents were directed to thereafter consider and pass final orders for closure of the account promptly.

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