18 June 2010
Finance Act 2007 ammended Rule 3 for valuation of perquisite with effect from 1-4-2005. this resulted in refund for F/Y 2005-06.subsequently Revised returns were filed for F/Y 2005-06 in june 2007. However in some cases Assessees have received Reply fro Tax Authorities that since Revised return was not filed within a year of end of the financial year, the same can not be entertained. it seems that tax authorities are not correct as it is retrospective ammendment of the statute that has caused the refund. can any one please clarify.
19 June 2010
Section 139(5) of the Incometax Act, 1961 reads as follows:
[(5) If any person, having furnished a return under sub-section (1), or in pursuance of a notice issued under sub-section (1) of section 142, discovers any omission or any wrong statement therein, he may furnish a revised return at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier :
Provided that where the return relates to the previous year relevant to the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year, the reference to one year aforesaid shall be construed as a reference to two years from the end of the relevant assessment year.]
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