Revised Income Return through the process of condonation does not imply its content acceptable:
The case:
The court has to decide whether it comes under CBDT’s scope to consider the direction given to admit a revised return by the process of condonation equivalent to the direction to accept the contents given in the revised income return under section 119 (1) of the Income Tax Act.
The verdict- Whether Revised Income Return through condonation means it would be acceptable?:
On May 02,2017 the court gave its verdict as ‘NO’.
The case study for Revised Income Return through the process of condonation does not imply its content acceptable:
An assessee filed his income tax return showing them as his agricultural and other income. As an emergency proceeding, this led to an ex parte assessment.
The petitioner filed a Writ Petition with the High Court stating that the mental condition of the petitioner was not alright and he had bipolar disorder leading to incorrect filing of his return with improper disclosure of the relevant incomes.
The court realized the CBDT’s (Central Board of Direct Taxes) authority under section 119 (2) (b) to divert the case to the AO (Assessing Officer) for looking into it afresh.
So the petitioner approached the CBDT for seeking condonation in the delay caused in filing the revised return. He claimed that the particulars of the revised return would clarify all the irregularities pointed in the ex parte assessment.
CBDT turned down the application saying that the relief granted would amount to interference with the authority and the workings of the AO.
On appeal the High Court held the following:
The HC said that the CBDT has misunderstood the provision u/s 119 (1). The CBDT did not have to grant relief directing the AO to some course of action.The request of the assessee was indisputable to condone delay in the filing of his revised return.
The CBDT was just asked to allow him to provide a revised return, nothing else. Therefore, if the CBDT did not admit the revised return through condonation, then in the eyes of the court CBDT fell into error of law.
Related Read- All about filing revised return of Income Tax
