2017 (7) TMI 744

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....se? [B] Whether the Appellate Tribunal has not erred in in facts and circumstances in deleting the addition of Rs. 69,96,450/- made by the Assessing Officer by disallowing set off of speculation loss (F & O) as the same was not claimed in the original return but claimed in revised return where the case attracts the provisions of Section 139(3) of the Act? 2. So far as question no. [A] is concerned, by a separate order passed in case of this very assessee in Tax Appeal No. 492 of 2017, we have refused to interfere. Our reasons are as under: "3. With respect to this question, we notice that the CIT(A) confirms with the Assessing Officer that interest expenditure of Rs. 1.11 crores had to be disallowed. However, the Tribunal noted that th....

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....he Assessing Officer's view that the revised return should be treated as non-est. 4. Before us learned counsel for the revenue placed heavy reliance on the provisions contained in sub-section (3) of Section 139 to contend that an assessee who wishes to carry forward any loss must file a return under sub-section (3) within the time permitted and only upon which the same would be treated as return under Section 139(1) of the Act. Counsel for the revenue submitted that when no return in terms of sub-section (3) of Section 139 claiming carry forward or set off loss was filed, such claim cannot be subject matter of a revised return. Had the assessee filed such return, the possibility of revising such return on finding any error would arise. 5.....

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.... or before the completion of the assessment, whichever is earlier. This is precisely what the assessee did while exercising the right to revise the return. Sub-section (5) of Section 139 does not envisage a situation whereupon revising the return if a case for loss arises which the assessee wishes to carry forward, the same would be impermissible. In terms, sub-section (5) of Section 139 allows the assessee to revise the return filed under subsection (1) or sub-section (4) as long as the time frame provided therein is adhered to and the requirement of the revised return has arisen on discovery of any omission or a wrong statement in the return originally filed. Accepting the contention of the revenue would amount to limiting the scope of re....