2012 (5) TMI 132

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....r 2001-02 whereby the Tribunal has held that notice under Section 148 of the Act being issued after filing of revised return under Section 139(5) of the Act, is not valid. The background facts may be noted in brief. The dispute relates to assessment year 2001-02. The assessee, respondent herein, filed original return on 31st July, 2001. The said return was processed under Section 143(1) of the Act on 24th March, 2004. It appears that subsequently, the assessee discovered some omission and wrong statement and she filed a revised return on 28th May, 2002 surrendering Rs.1,00,000/- as income which was earlier shown as two gifts of Rs.50,000/- each. The return was finalised under Section 143(1) of the Act by the order dated 24th March, 2004.....

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.... 139(5) of the Act. 2. Whether on the facts and in the circumstances of the case, the Hon'ble Tribunal was justified in law in quashing the reassessment proceedings without appreciating the ratio of decisions given by the Hon'ble Supreme Court in the case of G.C. Agarwal Vs. CIT (Assam & Nagaland, etc.) 186 ITR 571." The learned counsel for the Department submits that filing of revised return by the assessee was wholly malafide action. She filed the revised return just to get out of the clutches of the inquiry proceedings put to motion by Investigating Wing of the Department in respect of large scale of gifts claimed by various assessees. Elaborating the argument, it is submitted that surrendering Rs.1,00,000/- (the gift amount) as incom....

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....the time stipulated therein. Thus if an assessee discovers any omission or wrong statement in the original return after filing the same, Section 139(5) enables him to file revised return. When the Act permits the filing of a revised return, it is expected to be considered by the assessing authority, if the same is filed before the assessment order is made by it, otherwise, the very purpose of giving such a right would be frustrated. In Dhampur Sugar Mills vs. C.I.T. (1973)90 ITR 236, this Court has laid down that a right has been given to every assessee to file a correct and complete return if he discovers an error or omission in the return filed earlier. The earlier return, after a revised return is filed, cannot form the basis of asses....