Revised return under section 139(5)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 January 2012 A small businessman has filed income tax return for the assessment year 2011-12 within the due date u/s 139(1) using presumptive income u/s 44AD. However, his actual net total income is below the presumptive income. As such, he has paid higher tax. Now, in this specific situation, is it possible to file REVISED RETURN u/s 139(5) using actual profit & loss account, and thus can he claim refund of excess tax paid?

Could you please advise for the above situation?
Thanks & Regards,

P.S.: I would appreciate very much the legal position on this issue - i.e., whether revised return is allowed or not - rather than general comments. Tks.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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25 January 2012 If the business man is small, revising the return will create big problem to him.
Once Income Tax has been paid on presumptive basis, department will not consider lower income unless you produce his audited accounts.
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This will cost more to him than the refund.

Querist : Anonymous

Querist : Anonymous (Querist)

25 January 2012 Sir, Could you pls give the legal position whether revised return is allowed in the above mentioned case under the following circumstances:

(1) if he is subject to tax audit

(2) if he is not subject to tax audit.

Thanks and regards,

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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25 January 2012 REVISED RETURN CAN BE FILED IF ORIGINAL RETURN HAS BEEN FILED ON OR BEFORE DUE DATE.
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IT CAN BE FILED WITHIN ONE YEAR, FROM THE DATE OF FILING OF RETURN , IN ANY CASE, WHETHER COVERED OR NOT UNDER THE TAX AUDIT, WHERE ASSESSMENT HAS NOT BEEN COMPLETED.
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INTIMATION RECEIVED U/S 143(1) (a) IS NOT TREATED AS COMPLETION OF ASSESSMENT.

Querist : Anonymous

Querist : Anonymous (Querist)

26 January 2012 Sir,
Thank you for your advice.
Indeed my doubt was whether this case would fit into the wordings of Sec. 139(5) i.e., "omission or any wrong statement therein".
Thank you.

Rgds,

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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26 January 2012 To my view, showing presumptive income itself does not mean omission or any wrong statement.

Querist : Anonymous

Querist : Anonymous (Querist)

27 January 2012 Sir, In that case, revised return can not be filed u/s 139(5) in the above situation where the assessee wants to show lower profit (actual one) compared to the presumptive income which was shown in the original return!!! Is it right?

Thanks & regards,

Querist : Anonymous

Querist : Anonymous (Querist)

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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04 February 2012 A tax-consultant should file the return of the assessee only when the assessee is fully prepared for filing it. After filing the return, if he is ready to pay you the fee for frequently visiting Income Office, you may do what he desires.
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