AI Drafter 
TaxTMI 
TaxTMI 
2019 (11) TMI 150
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....urt 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 profits of this year from the carried forward losses of the previous year in terms of Section 72 of the Act. This for the reason the prescribed electronic returns do not enable making the above claim as it is largely self populated. Resulting in excess income being declared, which would require more amount being required to be paid as tax. Thus, in view of the same, if the return of income is filed as prescribed, it would be either processed under Section 143(1) of the Act, demanding excess tax or being treated as defective (if some entries/collumns are not filled). This as last date for filing the return of income is 31st October, 2019 and unless the paper return of income is directed to be accepted, prejudice would be caused to the petitioner. 4. Briefly, the facts leading to the filing of the petition as claimed by the petitioner are as u....
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....res and make a claim for set off under Section 72 of the Act in the present facts. This results in excess income being declared, resulting in an obligation to pay more tax on income which in term of section 72 of the Act is allowed to be set off against carried forward losses of earlier years. It is in these circumstances, the petitioner has prayed that he be allowed to file his return of income in appropriate form for the subject assessment year in paper form and the same be taken up for assessment in accordance with the 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....
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....of Goetze (India) Ltd. Vs. Commissioner of Income Tax, 284 ITR 323 wherein it has been held that if a claim is not made by the assessee in its return of income, then, the Assessing Officer would have no power to entertain a claim otherwise then by way of revised return of income. The revised return of income if the petitioner attempts to file, would result in the petitioner not being able to make the claim, for which the revised return is filed as the revised return of income would also have to be filed in the prescribed electronic form which does not provide for such an eventuality. Thus, for the purposes of the subject assessment year if the return of income is filed electronically, it would have given up at least before the Assessing Officer his claim to benefit of Section 72 of the Act. This whether the return of income is processed under Section 143(1) of the Act or under goes scrutiny under Section 143(3) of the Act. 8. The purpose and object of e-filing of return to have simplicity and uniformity in procedure. However, the above object cannot in its implementation result in an assessee not being entitled to make a claim of set off which he feels he is entitled to in accor....
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....on. This view of ours is also supported by the fact that Mr. Walve, learned Counsel appearing for the Revenue on instructions states that 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 the petitioner is right in his claim that the prescribed return of income to be filed electronically provides prohibits an assessee from making its claim. However, in the meantime, the petitioner without prejudice to his rights and contentions would file the return of income in electronic form on the system ....