2018 (6) TMI 1274

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....s are, the assessee an individual filed his return of income for the impugned assessment year on 28th July 2011, declaring total income of Rs. 4,91,750. Subsequently, the assessee filed a revised return of income under section 139(5) of the Act on 20th October 2012, declaring total income of Rs. 6,24,050. In the said revised return of income the assessee while offering long term capital gain of Rs. 49,96,681, claimed deduction of the said amount under section 54 of the Act towards investment of an amount of Rs. 1,15,00,000 in a new residential house. Thus, in effect, no capital gain was offered to tax. Alleging that the assessee filed the revised return of income after issuance of notice under section 143(2) of the Act, the Assessing Office....

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....such revised return of income has to be taken into consideration. He submitted, while the Assessing Officer has rejected the revised return of income as invalid, at the same time he has accepted the income offered in the revised return of income including the long term capital gain and has only rejected assessee's claim of deduction under section 54 of the Act. Without prejudice to the aforesaid contention, the learned Authorised Representative submitted, even if the assessee had not claimed deduction under section 54 of the Act before the Assessing Officer, he can claim such deduction before the Appellate Authorities. He submitted, though by way of an additional ground the assessee has claimed deduction under section 54 of the Act before t....

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....y the assessee is invalid since it was filed after issuance of notice under section 143(2) of the Act. Thus, as could be seen, the Assessing Officer has not entirely rejected the revised return of income filed by the assessee. When it comes to the income offered in the revised return of income, he has accepted it, whereas, when it comes to deduction claimed under section 54 of the Act, the Assessing Officer conveniently rejects the revised return of income filed by the assessee. Thus, the Assessing Officer has adopted a very selective approach in respect of the revised return of income filed by the assessee. A careful reading of the provisions contained under section 139(5) of the Act will make it clear that if an assessee discovers any omi....