Whether tribunal can direct A.O. to consider a claim through a return which is beyond limitation?
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Short note of today's case law for quick reference:
[2024] 468 ITR 372 (SC)
Shriram Investments
v.
Commissioner of Income Tax
Abhay S. Oka and Augustine George Masih JJ
October 4, 2024
1) The assessee filed a return on 19.11.1989 for the A.Y. 1989-90.
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2) On 31.10.1990, the assessee filed a revised return.
3) Intimation was issued on 27.08.1991 u/s 143(1)(a) and assessee paid the necessary tax amount.
4) Assessee filed another revised return on 29.10.1991 and claimed deduction of deferred revenue expenditure through second revised return.
5) The A.O. did not take recognizance of the revised return.
6) The assessee preferred an appeal which CIT(A) dismissed on the ground that in view of Section 139(5), the revised return filed on 29.10.1991 was barred by limitation.
7) The assessee preferred an appeal before the Tribunal which remanded the case back to the A.O. directing him to consider the assessee’s claim regarding the deduction of deferred revenue expenditure.
8) The revenue preferred an appeal before the High Court which reversed the order of Tribunal.
9) On assessee appeal to Supreme Court, court held that:
At the relevant time revised return can be filed at any time before the expiry of one year from the end of relevant assessment year or before the completion of assessment, whichever is earlier.
10) When revised return was filed dated 29.10.1991it was barred by limitation in terms of Section 139(5).
11) The Tribunal had not exercised its power under section 254 to consider the claim, instead the Tribunal directed the A.O. to consider the assessee’s claim.
12) The A.O. had no Jurisdiction to consider the claim made by the assessee in revised return filed after the time prescribed by Section 139(5) for filling a revised return had already expired.
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3wTimely compliance is essential, and deviations cannot be remedied through judicial directions when statutory limitations have elapsed. Claims made through revised returns filed beyond the statutory deadline under Section 139(5) are legally invalid and cannot be entertained.