2023 (11) TMI 643

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....iled on 11-09-2015 declaring total income at Rs. 5,01,460/-, which was a belated return u/s 139(4) of the Income-tax Act, 1961 (hereinafter called `the Act'). Thereafter, the assessee filed a revised return on 11-02-2016 declaring total income at Rs. 95,21,060/-. In this return, the assessee declared long term capital gain and also claimed exemption under section 54F of the Act. The Assessing Officer (AO) completed the assessment at a total income of Rs. 1,51,53,060/- by adopting income as per the return of income filed at Rs. 5,01,460/-. The ld. CIT(A) did not allow the assessee's claim of exemption u/s. 54F on sale of the property and also confirmed the disallowance out of selling expenses. On the last ground raised before him, the ld. CI....

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.... property and claiming exemption u/s. 54F of the Act. 5. Sub-section (5) of section 139, prior to its substitution by the Finance Act, 2016 w.e.f. 01-04-2017, provides that: "If any person, having furnished a return under sub-section (1) or in pursuance to 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". A bare perusal of the provision transpires that a return can be revised if it was originally furnished under sub-section (1) of section 139 or in pursuance to notice u/s. 142(1). Undeniably, the ret....

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....nder Computer Aided Scrutiny Selection (CASS) for the reason of "Deduction claimed under the head Capital Gains". The assessee had neither offered any income from Capital gain nor claimed any deduction/exemption under this head in the original return. It was only in the revised return that the assessee offered income from long term capital gain after claiming exemption u/s. 54F. This shows that the return taken up for scrutiny was the revised return and not the original one. 8. Section 143(2) is a jurisdictional provision, which gives to AO the requisite power to frame the assessment. This section clearly provides that: 'Where a return has been furnished under section 139 or in response to notice under sub-section (1) of section 142, the A....

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....urn filed by the assessee vide Acknowledgement No.950640970110216 on 11-02-2016. We have noticed above that the assessee did not offer any income under the head `Capital gains' in the original belated return. It was only in the revised return that the assessee offered long term capital gain and also claimed exemption under the head `Capital gains'. From para 1 of the notice u/s. 143(2), it is clear that it refers to the deduction claimed under the head `Capital gains', which was claimed in the revised return filed u/s. 139(5) on 11-02-2016 with the Acknowledgement No. 950640970110216. The Ackn. no. is also that of the revised return. 11. It thus become palpable that the revised return was considered for selection of the case under CASS and....