Revise return
This query is : Resolved
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
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....
can you plz give the case reference or reference to your source....
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.
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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Regarding Appointment of auditor in case of casual vacancy
- RCM on GTA Services
- Conversion of Proprietorship Firm to Partnership Firm
- Validity of form 15 G and 15 H on Interest on fixed deposit
- GST 9- Table 8
- REVENUE RECOGNITION AS PER IND AS 115
- How to update Transaction data in broker samco account holding after transfer shares KARVY
- For sale of shares of a private limited company, what is process cost and time for demat of shares
- TDS AFTER SUBMISSION OF 15 G OR H
- Mismatch of Sales Invoice in GSTR-1
- TDS- defaults - old period ie. F.Y. 2012-2013 etc, etc
- Supply to unit situated in SEZ
- GST- DRC 03 RCM Liability
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
- CA Articleship Extension Matter
- GST OFFICER WRONG NOTICE
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Composition Dealer GST Annual Return Filing process
- Revision under Section 264 in The Income Tax Act, 1961
Trending Online Classes
CAclubindia
