Assessment u/s 143(3) was not done on latest revised return. Remedy??

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An assessee's scrutiny assessment for AY 2016-17 was conducted on an earlier revised return, not the latest one filed before assessment completion. The filer was unaware of this discrepancy during the assessment. The discussion explores potential remedies, suggesting that the Assessing Officer should have considered the final revised return if filed within the statutory time limit. Options like filing a rectification application or an appeal to the CIT(A) with a delay condonation request are discussed.

Vivek Agrawal

Vivek Agrawal (Querist)

07 June 2022 For AY 2016-17, an assessee filed its original return of income on 31.10.2017 (within dues date) and revised it on 31.03.2018. Revised return was selected for scrutiny assessment.
Meanwhile assessee filed one more revised return on 29.03.2019 the same was processed at CPC Bangalore and transferred to Assessing officer on 31.03.2019 however the same was not considered for assessment and scrutiny assessment was done on first revised return filed on 31.03.2018. during assessment assesse did not know that assessement was being carried on first revised return and not on second revised return.
Should, assessee file rectification of order u/s 154

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

08 June 2022 You have to write a letter to AO for considering second revise return .

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

08 June 2022 As per my view, the second revised return would not have been considered when the notice for 143 scrutiny was already issued for exiting ITR. He could have filed fresh return for assessment in reply to the notice.

PARAS CHHAJED

PARAS CHHAJED

(Expert)

10 June 2022 A return of income can be revised any number of times within the time allowed u/s 139(5) and before completion of assessment. Return processed u/s 143(1)(a) can also be revised as processing of return is not an assessment. Therefore, the assessing officer ought to have taken into account the latest revised return if it was filed within the allowed time before finalizing the assessment. A rectification application may be filed, but that might not be entertained by AO. If there is material difference, then file an appeal before CIT(A) with application for condonation of delay.

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