INCOME TAX ACT, 1961

Section 261 Section 44AB

Appeal (Supreme Court) - Return - Validity - Return filed without audit report under section 44AB

Assessee preferred appeal against the judgment of Himachal Pradesh High Court in Himachal Pradesh State Forest Corporation Ltd. v. Dy. CIT [Civil Writ Petitions Nos. 590, 591, 592 and 593 of 1992, dt. 5-5-1997] : (1998) 231 ITR 556 (HP-HC) : 1998 TaxPub(DT) 0524 (HP-HC), whereby the High Court held that Board's Instruction No. 1348 dated 30-8-1980 cannot prevail over the statute and the return filed without audit report under section 44AB was an invalid return the Supreme Court disposed of the appeal directing that the revised return dated 1-2-1994 filed by assessee for the concerned assessment year 1989-90 accompanied by audited accounts and the audit report under section 44AB of the IT Act ought to proceed further and be taken to its loical end by the AO expeditiously. Held: In light of the decision of the High Court of Himachal Pradesh, Shimla in C.W.P. No. 591 of 1992 dated 5-5-1997 pertaining to assessment year 1989-1990 read with order in CWP No. 125 of 1995 pertaining to assessment year 1988-1989, it must necessarily follow that the revised return dated 1-2-1994 filed by the appellant-assessee for the concerned assessment year 1989-1990 accompanied by audited accounts and the audit report under section 44AB of the IT Act ought to proceed further and be taken to its logical end by the AO expeditiously. The court directed accordingly. Besides this, nothing more is required to be said in this appeal except to reiterate that the assessment be proceeded on its own merits in accordance with law, including to consider all just exceptions available to the assessee. The appeal is disposed of accordingly. Pending applications, if any, stand disposed of.

REFERRED :

FAVOUR : In assesse's favour (Partly).

A.Y. :

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