TaxTMI 
TaxTMI 
1972 (3) TMI 16
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....eady. Later on, on August 26, 1962, the profit and loss accounts and the balance-sheet were submitted. Thereafter, the assessee filed a revised return on October 30, 1962. Although it was also in Form A under rule 19 of the old Act, the return was complete otherwise. The Income-tax Officer had issued a notice under section 22(2) of the Indian Income-tax Act, 1922, and the first return was filed in compliance thereof. After the revised return was filed by the assessee the Income-tax Officer issued a notice to the assessee under section 143(2) of the Income-tax Act, 1961, and finally completed the assessment under section 143(3) of the Act. The assessee, feeling aggrieved, filed an appeal against the assessment and, inter alia, took the groun....
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....ded that the question referred by the Tribunal should be refrained in the following terms: "Whether, on the facts and in the circumstances of the case, the assessment for the assessment year 1961-62, which purports to have been made under section 143(3) of the 1961 Act is valid?" I do not think that the reframing of the question is either necessary or will more correctly represent the controversy between the parties before the Tribunal. I accordingly deal with the question as it is. The Tribunal held, firstly, that the return filed by the assessee on 20th June, 1961, in compliance with the notice under section 22(2) of the 1922 Act was invalid as it was given on a wrong form, was not properly verified, and was not accompanied by th....
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....invalid so as to be treated as non est, for purposes of section 297(2)(a) of the 1961 Act. I am also unable to agree with the view of the Tribunal that the return filed in June, 1961, should be deemed to be no return till its defects were removed by the filing of the balance-sheet and the profit and loss account in August, 1962. The ground upon which the return filed in June, 1961, is said to be defective is not so fundamental in nature as to take away from that document its character of a return. The return when filed was a return in all essential respects, and the removal of the defects merely made good the shortcomings from which it suffered. It must be held that the return in question must be considered as filed by the assessee in Ju....
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....naccurate particulars of such income in the original return even though he may subsequently file a correct and complete revised return, it must be held that the original return is also the effective return. I am not inclined to accept the contention. A person is penalised for the wrong act that he does and the offence becomes complete as soon as the act is done. It cannot be cured by subsequent mending. It is on this principle that an assessee can be penalised for concealing the particulars of his income or deliberately furnishing inaccurate particulars of such income. But, when an assessment has to be made the assessee is given a right to file a correct and complete return if he discovers an error or omission in the return filed earlier. T....
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....the new Act for the assessment years ending prior to 31st March, 1962, the assessment of the person for that year shall be made in accordance with the procedure specified in the 1961 Act. It appears that for the purpose of continuing proceedings for years ending prior to the commencement of the new Act, the return of the income has been made the starting point. Normally, proceedings for the assessment must be deemed to commence when the notice under section 22 of the 1922 Act or section 139 of the new Act is issued to an assessee, but for continuing the proceedings clauses (a) and (b) of sub-section (2) of section 297 make the return the basis for the applicability of the provisions of the old and new Acts. The return contemplated in these ....
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....to fall under section 297(2)(b) of the Income-tax Act, 1961. In my opinion, it is section 297(2)(a) which applies. The assessee filed his original return of income on June 20, 1961. A proceeding came into existence. On April 1, 1962, when the Income-tax Act, 1961, came into force, section 297(2)(a) was immediately attracted to that proceeding. Accordingly, the proceedings for the assessment of the assessee for the year to which the return pertained could be taken and continued as if the Income-tax Act, 1961, had not been passed. In other words, the assessment proceedings could be taken and continued under the Indian Income-tax Act, 1922. Subsequently, when the assessee filed a revised return, that could not put a stop to the operation of th....