TaxTMI 
TaxTMI 
2019 (11) TMI 150
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....the stage of admission. 2. This petition under Article 226 of the Constitution of India seeks a direction to the respondent no.1 - Assessing Officer and respondent no.2 - the Central Board of Direct Taxes to accept the petitioner's return of income for Assessment Year 2019-20 in paper form under Section 139(1) of the Income Tax Act, 1961 (the Act). 3. The petitioner has been compelled to move this Court on urgent basis as the petitioner is obliged under Section 139D of the Act read with Rule 12 of the Income Tax Rules, 1961 (Rules) to file its return of income electronically with his digital signature. This prescribed return of income which has to be filed electronically does not permit the petitioner to make his claim to set off of his p....
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.... of the assets was Rs. 77 crores (approximately). This excess amount of Rs. 77 crores (approximately) is to be offered to tax as short term capital gain under Section 50 of the Act. (c) During the subject assessment year, the petitioner has otherwise suffered a business loss of Rs. 57 crores (approx). This business loss, the petitioner is entitled to set off against the income of Rs. 77 crores which was subject to tax under the head "capital gain" in terms of Section 71 of the Act. Thus, leaving a balance of Rs. 20 crores (approx) as taxable income. It is this balance of Rs. 20 crores, the petitioner was entitled to set off from the carry forward business loss of Rs. 166 crores (approx) (see Exhibit-B to petition) in terms of Section 72 o....
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....he Act. 5. Mr. Mistri, learned Senior Counsel in support of the petition submits as under :- (a) The prescribed return of income to be filed electronically does not permit the petitioner to raise a claim of set off under Section 72 of the Act. Thus, what is available under the Act is taken away by the Rules; (b) The only manner in which the petitioner can now raise its claim for set off under Section 72 of the Act is by filing a return in paper form. In the absence of such a paper return being allowed, the petitioner will be taxed on amounts which is not taxable; (c) In the above circumstances, the Assessing Officer be directed to accept the return of income in paper form, as the last date of filing the return is 31st October, 2019; ....
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....ronic form is self populted i.e. on filling in some entries, the other entries in the return are indicated by the system itself. Thus, the petitioner is unable to make a claim which according to him, he is entitled to in law. In case, the petitioner is compelled to file in the prescribed electronic form, it could be declared by the Assessing Officer as defective (if all entries are not filled) or raise a demand for tax on the basis of the declared income under Section 143(1) of the Act or if the assessment is taken to scrutiny under Section 143(3) of the Act, then the petitioner will not be entitled to raise a claim of set off under Section 72 of the Act during the assessment proceedings. This in view of the decision of the Hon'ble Supreme ....
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....ntitled to. We accept the Assessing Officer's submission that in terms of Rule 12 of the Rules, the returns are to be filed by the petitioner only electronically and he is bound by the Act and the Rules, thus cannot accept the paper return. However, in terms of Section 139D of the Act, it is for the CBDT to make rules providing for filing of returns of income in electronic form. This power has been exercised by the CBDT in terms of Rule 12 of the Rules. However, the form as prescribed do not provide for eventuality that has arisen in the present case and may also arise in other cases. Thus, this is an issue to be brought to the notice of the CBDT, which would in case it finds merits in this submission, issue necessary directions to cover th....
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....the Assessing Officer who is present in Court states that in his experience he has not come across a case like this where the return which are prescribed under Section 139D of the Act r/w Rule 12 of the Rules do not take into account the situation where the assessee's claim cannot be considered. Moreover, from the facts as noted above, this situation (like the present) may not be restricted only to this petitioner but could generally arise in other cases also. 11. Therefore, it would be appropriate that the petitioner make a representation on the above issue to the CBDT, who would then consider it in the context of facts involved in the present case and issue necessary guidelines for the benefit of the entire body of the assessees, if....