The Assessing Officer (AO) cannot consider claims made in a revised return filed after the deadline for filing the revised ROI has expired: Supreme Court.

 

Recently, SC was concerned with the power of assessing Officer (AO) vis a vis claims made in a revised return filed after the deadline for filing the revised ROI has expired.

In this case, the appellant, Shriram Investments, filed a revised income tax return making certain claims after the expiry of the permissible period under Section 139(5) of the Income-tax Act.

The Tribunal initially directed the Assessing Officer to consider the claim in the revised return but the High Court overruled this by stating the claim was time-barred.

The Hon’ble Supreme Court upheld the High Court’s decision with following observation:

1.  The Assessing Officer lacked jurisdiction to consider the appellant’s claim made in the revised return filed after the time limit expired.

2.  In this context, the ruling referenced several notable cases, including:
– Goetze (India) Ltd. v. CIT (2006)
– Wipro Finance Ltd. v. CIT (2022)
– Wipro Ltd 446 ITR 1 (2022)
– National Thermal Power Co. Ltd. v. CIT (1998)

Supreme Court has held that the assessing Officer (AO) cannot consider claims made in a revised return filed after the deadline for filing the revised ROI has expired.

All above legal precedent highlights the importance of adhering to statutory time limits for filing revised returns and the implications of doing so beyond the stipulated period.

The copy of the order is as under:

Shriram Investments Vs The Commissioner of Income Tax IIIChennai