Transitional income-tax assessment: a valid revised return supersedes the original return and governs procedure under the new Act.

An original return filed before 1 April 1962 was not a nullity merely because it was in the wrong form or initially incomplete, and it retained the character of a return for the saving provision. A validly filed revised return supersedes the original return for assessment purposes, so the assessment must proceed on the basis of the revised return. On that footing, the transitional scheme under section 297(2) of the Income-tax Act, 1961 applied, permitting completion of the assessment under the procedural provisions of the new Act, including section 143(3).

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Issues: Whether the assessment for the assessment year 1961-62 was validly made under section 143(3) of the Income-tax Act, 1961, in view of the original return filed before 1 April 1962 and the later revised return.

Analysis: The original return filed in June 1961 was not treated as a nullity merely because it was filed in an incorrect form or was initially incomplete. It retained the character of a return for purposes of the saving provision. The Court further held that a revised return, when validly filed, supersedes the original return for assessment purposes, and the assessment has to proceed on the basis of the revised return. On that footing, the proceedings fell within the transitional scheme of section 297(2) of the Income-tax Act, 1961, and the assessment could be completed under the procedural provisions of the new Act.

Conclusion: The assessment was validly made under section 143(3) of the Income-tax Act, 1961, and the question was answered in the affirmative, in favour of the Revenue.

Ratio Decidendi: For transitional assessments, a validly filed revised return supersedes the original return, and the assessment may be completed under the procedural law applicable to the return ultimately governing the assessment.

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