TaxTMI 
TaxTMI 
2020 (9) TMI 762
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....facts as the notice under section 143(2) of the Act is time barred; 4. The Learned CIT(A) has erred in law and on facts in upholding disallowance of brokerage and commission on sales to the extent of Rs. 13,95,847/-; S. The Learned CIT(A) has erred in law and on facts in upholding disallowance of advertisement expenses of Rs. 4,11,175/-; 6. The Learned CIT(A) has erred in law and on facts in upholding disallowance of 'Business promotion -sales' expenses of Rs. 33,25,375/-; 7. The Learned CIT(A) in upholding additions to the returned income, has erred in not considering submissions made in support of the claim; 8. The Learned CIT(A) has erred in upholding adhoc disallowance; 9. The Learned CIT(A) and AO have erred in not invoking provisions of section 133(6) to get relevant information on genuineness of the claim of deduction; 10. The Learned CIT(A) and AO have failed to allow deduction of expenses without considering that the same has been routed through banking channels (wherever it exceeded statutory limit) and appropriate taxes thereon has been deducted under the provisions of the Act; 11. The impugn....
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.... the assessee rectify the defect within the time allowed, then the corrected return can be as a valid return. Therefore, the return dated 28/09/2016 would have remained an invalid return but for the appellant having filed the corrected return on 22/06/2017 in response to the notice u/s 139(9). That being the case, the return filed on 22/06/2017 becomes the valid return and the period of limitation is to be counted from that date. The notice u/s 143(2) was issued on 14/08/2018 i.e. within six months of the end of the year when the valid return was filed and hence the notice u/s 143(2) is held to not have been barred by limitation. Accordingly, the assessment completed pursuant to the issue of the notice u/s 143(2) is valid. The ground of appeal raised by the appellant has no merit and is dismissed as such" 5. On merits, Ld.CIT(A), partly granted relief to assessee in respect of addition made of advertisement expenses, business promotion expenses. Regarding brokerage and commission on sales and office function expenses, Ld.CIT(A) upheld additions. 6. Aggrieved by order of Ld.CIT(A), assessee is in appeal before us now. 7. At the outset, Ld.AR submitted that, in Ground No.3 a....
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....n observations of Ld.CIT(A) which reproduced hereinabove. 12. We have perused submissions advanced by both sides in light of records placed before us 13. We have also perused decision relied on by Ld.AR. Hon'ble Gujarat High Court had occasion to consider identical situation, as the one before us. It is noted that, Hon'ble Court while deciding similar issues by considered decisions rendered by various High Courts. Hon'ble Gujarat High Court observed and concluded as under: "16. It may be noted that there is no concept of corrected return of income under the Act. Therefore, in effect and substance, what the notice under subsection (9) of section 139 of the Act does is to call upon the petitioner to remove the defects pointed out therein. Therefore, mere reference to the expression "corrected income" in the notice under subsection (9) of section 139 of the Act does not mean that a fresh return of income has been filed under that subsection. Thus, under subsection (9) of section 139 of the Act, it is only the original return which gets corrected and no new return is filed. In other words, the original return which was defective when it was filed is rectified upon remova....
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....furnished under section 139, or in response to a notice under subsection (1) of section 142, the Assessing Officer or the prescribed income-tax authority, as the case may be, if, considers it necessary or expedient to ensure that the assessee has not understated the income or has not computed excessive loss or has not underpaid the tax in any manner, shall serve on the assessee a notice requiring him, on a date to be specified therein, either to attend the office of the Assessing Officer or to produce, or cause to be produced before the Assessing Officer any evidence on which the assessee may rely in support of the return: Provided that no notice under this subsection shall be served on the assessee after the expiry of six months from the end of the financial year in which the return is furnished." 19. On a plain reading of sub-section (2) of section 143 of the Act, it is apparent that the Assessing Officer or the prescribed incometax authority must issue a notice under that sub-section only in those cases where a return has been made under section 139 or in response to a notice issued under section 142(1), if he considers it necessary or expedient to ensure that ....