Updated income-tax return u/s139(8A) after assessment proceedings barred; request rejected, assessment and disallowances upheld

Whether an updated return under Section 139(8A) can be filed after assessment proceedings commence: held that clause (b) of the third proviso to s.139(8A) bars furnishing an updated return where proceedings for assessment/re-assessment/recomputation/revision are pending or completed for the relevant year; petitioner's request made after issuance of notice under s.143(2) and during scrutiny under s.143(3) r/w s.144B was rightly rejected and the AO proceeded to disallow exemptions and deductions on merits - request refused and assessment upheld. Applicability of Press Release/NUDGE: held inapplicable as petitioner was not an identified taxpayer under that scheme, so it did not entitle petitioner to file an updated return; writ dismissed.

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Issues: Whether an assessee whose case has been selected for scrutiny and in respect of whom assessment proceedings are pending can be permitted to furnish an updated return under Section 139(8A) of the Income-tax Act, 1961 after the initiation of such proceedings.

Analysis: The statutory scheme of Section 139(8A) (as amended) permits filing of an updated return within the prescribed period but contains provisos that restrict eligibility. The third proviso provides that no updated return shall be furnished where any proceeding for assessment or reassessment or recomputation or revision of income under the Act is pending or has been completed for the relevant assessment year. The facts involve selection for scrutiny under Computer-Assisted Scrutiny Selection (CASS) and issuance of notices under Section 143(2) and Section 142(1) followed by assessment under Section 143(3) read with Section 144B. The Press Release relied upon by the assessee relates to a departmental outreach to identified taxpayers for a different assessment year and does not override the statutory bar in the proviso. The Assessing Officer's rejection of the request to file an updated return occurred after scrutiny proceedings were pending; accordingly the statutory prohibition in clause (b) of the third proviso to Section 139(8A) applies and disallows filing of an updated return at that stage. The petitioner retains the remedy of appeal against the assessment order and related disallowances and penalty proceedings.

Conclusion: The statutory bar on filing an updated return where assessment proceedings are pending applies; the request to file an updated return is not permissible and the impugned assessment order refusing the updated return is upheld (in favour of Revenue).

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