2021 (3) TMI 595

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....n of the business premises of the assessee and unearthed suppression of purchase bills in the sales turnover. To bring a quietus to the issue relating to suppression for sales tax purposes, the assessee opted for compounding the offence under Section 47 of the Kerala General Sales Tax Act and remitted the compounding fee. In the meantime, on the basis of two letters, the income tax department initiated enquiry proceedings. However, the assessee filed a revised return under the Income Tax Act 1961 (for short the Act) on 14.1.1991 and offered an additional sum to be added towards his total income. 2. Since even at the time when the revised return was filed, the assessment proceedings had not been completed, the assessee was served with a not....

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....krishnan for Adv.V.B.Unniraj, learned counsel for the appellant and Senior Counsel Sri.P.K.Raveendranath Menon instructed by Adv.Jose Joseph, learned Standing Counsel for the respondent. 6. Learned counsel for the appellant vehemently canvased for the proposition that once a revised return filed by the appellant is accepted, the same ought to be treated as valid in the eye of law and hence there was no suppression warranting any imposition of penalty. He referred to the notice issued under Section 148 of the Act to submit that since the assessment had not been completed as on the date of filing of the revised return, it must be deemed that the original return filed had been effaced and replaced with the revised return and thereafter the re....

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....urnished a return under sub-section (1), or in pursuance of a notice issued under sub- section (1) of section 142, discovers any omission or any wrong statement therein, he may furnish a revised return at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier: Provided that where the return relates to the previous year relevant to the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year, the reference to one year aforesaid shall be construed as a reference to two years from the end of the relevant assessment year." 9. It is true that as per the provisions of Section 139(5) an assessee is entitled to file a re....

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....eturn with the revised one with the effect of completely effacing the original return. The decisions relied upon by the learned counsel for the appellant are not strictly applicable to the facts of the present case, though we have no quarrel with the propositions laid therein. 12. Once we have found that the revised return cannot have the effect of effacing the original return, it is explicit that concealment of the particulars of income and furnishing of inaccurate particulars of income were revealed to the assessing officer in the course of proceedings under the Act. There could be no manner of doubt that, if the assessing officer in the course of any proceedings under the then Act becomes satisfied about the concealment of income or fur....