2020 (8) TMI 265

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....rounds and one fresh ground in its appeal and they are briefly stated hereinbelow for adjudication:- (i) The Ld. CIT (A) has erred in upholding the order of the Ld. AO who had speciously rejected the returned filed by the assessee U/s. 139(5) of the Act. (ii) The fresh ground raised before the Tribunal for the first time is that the Ld. AO has erred in converting the limited scrutiny to complete scrutiny disregarding the instructions issued by the CBDT vide Notification dated 24/12/2014, 29/12/2015 and 14/07/2016. 3. The brief facts of the case are that the assessee is a Private Limited company engaged in Waste Management business, filed its original return of income on 30/09/2015 declaring loss of Rs. 50,94,693/-. Subs....

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.... Ld. DR could not controvert to the submission of the Ld. AR. 5. After hearing both sides, we find merit in the submission of the Ld. AR. On an identical circumstance, the Cochin Bench of the Tribunal had set-aside the order of the Ld. AO and the Ld. CIT (A) and directed the Ld. AO to process the revised return filed by the assessee U/s. 139(5) of the Act quantifying the loss in accordance with law by treating the return of loss filed U/s. 139(3) of the Act as if the return of income had been filed U/s. 139(1) of the Act. The relevant portion of the decision of the Cochin Bench of the Tribunal is extracted hereinbelow for reference: "4. We have considered the rival submissions on either side and also perused the material availab....

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....been filed under section 139(1). This position is clear from the expression ".....All the provisions of this Act shall apply as if it were a return under sub-section (1)". In other words, a return filed under section 139(3) is deemed to be a return filed U/s. 139(1). The provision contained in section 139(3) makes it clear that all the provisions of this Act shall apply to such a return as if it were a return under section 139(1). In view of such a specified provision, there is no reason exclude the applicability of section 139(5) to a return filed U/s. 139(3)." A similar view was taken by the Allahabad High Court in the case of Dhampur Sugar Mills Ltd (supra). By respectfully following the judgment of Madras High Court in the case....