Section 139(5) provides for filing revised return by any person who has furnished return under section 139(1) or section 139(4). The revised return can be filed if the person discovers any omission or any wrong statement in the return furnished. A revised return can be furnished at any time before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
The issue arises with respect to meaning of the term ‘completion of the assessment’. ‘completion of the assessment’ would mean passing of the assessment order by the AO. Therefore, the Assessee can file revised return before ‘completion of the assessment’ assuming that it is before the end of the assessment year.
Some relevant issues are discussed below:
Revised Return can be filed after intimation u/s 143(1)
CIT v Himgiri Foods Ltd (2010) 333 ITR 508 (Gujarat HC) – The HC held that if a revised return is furnished by an assessee after issue of intimation, it is incumbent upon the AO to process the revised return. The HC held that an intimation under section 143(1)(a) cannot be equated with an assessment framed under section 143(3) and the AO cannot refuse to process the revised return.
Smt Bhanuben Chinmanlal Malavia v ITO 100 TTJ 337 (ITAT Rajkot) – The ITAT held that revised return can be filed even after processing of return under section 143(1) because the same is not asst.
Revised Return can be filed after issue of Notice u/s 142(1)
Mahesh H. Hinduja vs. ITO [2018] 195 TTJ 1068 (Mumbai – Trib.) – The assessee filed his return declaring certain taxable income. Subsequently, the assessee filed a revised return of income in which he offered LTCG and claimed deduction u/s. 54 towards investment in a new residential house. The AO held that since revised return of income was filed after issuance of notice u/s. 143(2), same is invalid.
The ITAT observed that a careful reading of the provisions contained u/s. 139(5) would make it clear that if an assessee discovered any omission or wrong statement in the original return of income, he could file a revised return of income within the time limit as per section 139(5). There was no bar/restriction in the provisions of section 139(5) that the assessee could not file a revised return of income after issuance of notice u/s. 143(2) of the Act. The assessee could file a revised return of income even in course of the assessment proceedings, provided, the time limit prescribed u/s. 139(5) was available. The ITAT held that the revised return of income filed by the assessee u/s. 139(5) is valid.