HARGOVIND DAMJI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) At the instance of the assessee, the Income-tax Appellate Tribunal, Ahmedabad "A" Bench, Ahmedabad has referred the following question of law for the opinion of this Court :-

(2.) The assessment year in question is the assessment year 1973-74. The assessee filed a return of income on 14.8.1973 declaring the total income of Rs.10,904.00. The due date for filing the return under Section 139(1) of the Income-tax Act, 1961 was 30.6.1973. However, the Central Board of Direct Taxes had issued a circular on 20.6.1973 extending the time for filing the return for the assessment year 1973-74 upto 15.8.1973. The assessee thereafter filed the revised return on 22.3.1976 disclosing the total income of Rs.11,304.00. The Income-tax Officer processed the said return and completed the assessment on 15.3.1977 treating the return filed on 22.3.1976 as a valid return and determined the total income of the assessee at Rs.79,460.00.

(3.) The assessee has challenged the said assessment in appeal before the first appellate authority and one of the contentions raised in the said appeal was that the second return filed by the assessee should have been treated as non-est in law as Section 139(5) of the Act enables an assessee to file a revised return only if he has filed a return under Section 139(1) or Section 139(2). In the case of the assessee, since the assessee has not filed the return under Section 139(1) or Section 139(2), the original return filed by the assessee can be treated as return filed only under Section 139(4) and hence the provisions contained in Section 139(5) could not have been attracted. With regard to return filed on 22.3.1976, it was stated that since the said return was not a valid return, the Income-tax Officer should have completed the assessment on or before 31.3.1976 in view of the provisions contained in Section 153(1)(a)(iii) of the Act. The assessment was further challenged on the ground of limitation by contending that the benefit contained in Section 153(1)(c) of the Act enabling the Income-tax officer to complete the assessment within one year from the date of filing of the revised return cannot be availed of by the Income-tax Officer. The first appellate authority rejected this contention of the assessee vide his order dated 17.1.1981 holding that the return filed by the assessee on 14.8.1973 was a voluntary return under Section 139(1) of the Act. It was further held that the order passed by the Income-tax officer on 15.3.1977 was not barred by limitation and valid.