1984 (9) TMI 9

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....the circumstances of the case and the material on record, the Tribunal was correct in law in ignoring the return under section 139(5) as a return under section 139(4) as in any case the return under section 139(5) or section 139(4) replaces the original return filed under section 139(1) and has to be disposed of by assessment of the fresh return filed in place of the original return ? " The facts that emerge from the statement of case submitted by the Tribunal are that the assessment pertains to the year 1978-79. The accounting year ends on March 31, 1978. It is stated that on September 18, 1978, the assessee filed a return under section 139(1) of the Income-tax Act, 1961, showing a net profit of Rs. 57,990. In this return, the assessee ....

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....basis. On this decision of the Tribunal, it appears that, at the instance of the assessee, the present reference has been made. The facts are not in dispute. It is not disputed that originally when the return was filed by the assessee, a statement of accounts and a balancesheet were submitted which showed that the assessee was following mercantile basis of accounts and the accounts were maintained in accordance with that system. Subsequently, a revised return was filed and with this revised return, a statement of accounts was filed with a note that these accounts were maintained on cash basis. The explanation of the assessee was that although he had maintained accounts on the mercantile basis, in fact, the sale proceeds had not been reco....