Revise return

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Querist : Anonymous

Querist : Anonymous (Querist)

08 October 2014 i had filed late return.... i had forget to disclose income from sale of plot.... what to do now

CA Parul Saxena

CA Parul Saxena (Expert)
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08 October 2014 file rectification u/s154

Querist : Anonymous

Querist : Anonymous (Querist)

09 October 2014 are you sure abt. it....means have you come accross with the same situationin practical life....

can you plz give the case reference or reference to your source....

Aashok Kumar Sharma online

Aashok Kumar Sharma online

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22 July 2025 Question (Dated: 08–09 October 2014):
I filed a late (belated) return, but I forgot to disclose income from the sale of a plot. What can I do now?
Someone advised me to file a rectification under Section 154 — is that correct? Do you have a practical example or reference?

✅ Correct Answer (as per law applicable in October 2014):
Belated Returns Could Not Be Revised (As per old law)

Under the law applicable before AY 2017–18, a belated return filed u/s 139(4) could not be revised under Section 139(5).

So, if your return was belated, you could not file a revised return to include the missing capital gain.

Can Rectification u/s 154 Help?

Section 154 allows for rectification of “mistake apparent from record”.

However, non-disclosure of capital gain is not a mistake apparent from the record — it's omission of income, which is a factual issue, not a simple clerical or arithmetical error.

Hence, Section 154 is NOT the correct route in your case.

What Can You Do?

Since you cannot revise the belated return or rectify it under Section 154, you have the following two options:

a. File a revised computation with the Assessing Officer (AO):

If the return comes under scrutiny or is processed u/s 143(1), you can voluntarily disclose the omitted capital gain income and pay tax with interest.

This is a proactive way to correct the mistake before the department detects it.

b. File a letter of voluntary disclosure:

You may write a letter to the AO admitting the omission and submit a revised computation of income with tax paid (including interest u/s 234B/C).

This may help avoid penalty u/s 270A (under-reporting) or prosecution, showing it was not willful concealment.

Practical Reference / Precedents:

While there's no exact case law allowing rectification u/s 154 for omitted capital gains, CBDT Circular No. 14(XL-35) of 1955 and multiple Tribunal rulings emphasize the AO’s duty to assist honest taxpayers.

In practice, many tax professionals submit revised computation during assessment or intimation processing to correct such mistakes.

✅ Recommendation:
You cannot revise a belated return or use Section 154 to add omitted capital gains.

File a revised computation and pay the correct tax.

Submit a voluntary disclosure letter to the AO to mitigate penalties.

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