INCOME TAX ACT, 1961

Section 139

Return of income - Carry forward of loss claimed in revised return of income - Return filed by assessee under section 139(5) -

Assessee was engaged in Waste Management business, filed its original return of income declaring a loss. Subsequently, assessee filed revised return of income and once again declaring loss. Thereafter, the case of assessee was selected for scrutiny under CASS and AO made addition towards deferred tax liability and further rejected the revised return filed by assessee under section 139(5) and disallowed to carry forward of the loss by stating that the original return filed and loss claimed therein had no basis and the revision of such return was not in accordance with the provisions of section 139(5). Held: A similar view was taken by Allahabad High Court in the case of Dhampur Sugar Mills Limited v. CIT (Central) 1973 TaxPub(DT) 0200 (All-HC) wherein order of Authorities were set aside and AO was directed to process the revised return filed by the assessee under section 139(5) and quantify the losses in accordance with law. In the case of the assessee, it was apparent that assessee had filed its return of loss within the due date of filing of the return under section 139(3) and further, assessee had revised its loss return for the second time under section 139(5) within the expiry of one year from end of the relevant assessment year. Therefore, assessee was entitled to carry forward the loss claimed in the revised return of income.

Followed:M/s. Angel Label Division v. Assistant Commissioner of Customs (Refunds) [W.P.No.8178 of 2012, dt. 29-3-2012] CIT v. Periyar District Co-operative Milk Producers Union Ltd. (2004) 266 ITR 705 (Mad.) : 2004 TaxPub(DT) 1402 (Mad-HC) Dhampur Sugar Mills Limited v. CIT (Central) 1973 TaxPub(DT) 0200 (All-HC) and M/s Kerala state Electronics Development Corporation Ltd v. Dy. CIT [ITA No. 485/Coch/2010, Order, dated 29-3-2012]

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2015-16

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