TaxTMI 
TaxTMI 
2024 (9) TMI 135
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....d in law, the Ld. Commissioner of Income Tax (Appeals) has erred in upholding the disallowance of expenditure on interest paid on borrowed capital u/s 57 of the Income Tax Act. 2. That in view of facts and circumstances of the case and in law, the Ld. Commissioner of Income Tax (Appeals) has failed to note that the appellant, inadvertently, claimed deduction under the wrong head. 3. That in view of facts and circumstances of the case and in law, the Ld. Commissioner of Income Tax (Appeals) has misinterpreted Section 139(5) of the Income Tax Act in furtherance thereof had treated the revised return as infructuous. 4. That in view of facts and circumstances of the case and in law, the total addition of Rs. 27,47,508....
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....on 139(5) may not be treated infructuous return being not filed in accordance with the provisions of the Act. 3.2 In response thereof, non reply was filed by the assessee and thereafter the AO held that the silence on the part of the assessee is taken as his acceptance of the fault of claiming deduction under section 57 of the Act and accordingly the said deduction was disallowed and added to the taxable income in the hands of the assessee and as against the returned income of Rs. 13,11,290/-, the assessed income was determined at Rs. 40,58,798/- by making addition/disallowance of Rs. 27,47,508/- for the amount of deduction claimed under section 57 and brought to tax in the hands of the assessee. 4. Being aggrieved, the assessee....
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.... Bagh, New Delhi-110005 during the year showing, his rental income, business and other income in the Income Tax Return filed. The return filed was processed within the ambit of section 143(1) of the Act and the case of the assessee was selected for scrutiny u/s 143(3). During the assessment proceeding, notice u/s 143(2) was issued on 09/08/2018 Statutory notices u/s 142(1) of the Act along with questionnaire were also issued and asking for specific details. In response to statutory notices and questionnaire issued, the assessee has filed replied on Income Tax Portal. Addition on account of deduction claimed u/s 57 of the I.T. Act, 1961 under the head 'income from other sources': During the year, the assessee has fi....
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....etion of the assessment, whichever is earlier. According to Section 139(5), If any person, having furnished a return under subsection (1) or sub-section (4), 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. Whereas as per u/s 139(5) as stated above belated return filed u/s 139(4) can be revised at any time before expiry of one year from the end of relevant assessment year or before the completion of assessment, whichever is earlier. In our case assessee revised his original return filed before completition of assessment but assessing o....
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....l as the Memorandum explanation the provision in the Finance Bill 2016 wherein Sub Section (5) of Section 139 has been substituted to provide that if any person, having furnished a return under sub-section (1) or sub-section (4) of section 139 or any return furnished in response to 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. It was submitted that both the AO as well as the Ld. CIT(A) have failed to take cognizance of the amendment which has been brought in by the Finance Act 2016 w.e.f A.Y. 2017-18....