Income Tax

ITR 561 views 2 replies

Hema Kumari

CA FINAL

35 Points Joined June 2010

Dear Frnds,

I have one problem relating to income tax provisions. Please help me and submit your opinion as soon as possible .

One of clinet filled his income tax return for the A.Y. 2008-09 after the due date i.e. 01.08.2008. Assessee was an agriculturist and there was delay of one day in filling the ITR. Client sold in the previous year a part of his agricultural land and utlilsed that amount for purchasing the agricultural land, but client paid tax of Rs. 14 lakh without knowing the income tax provisions. Later on client come to know that he can claim the exemption u/s 54B, and filled the revised ITR as on 08.08.2008. Afterwards this case was taken up for scrutiny., and notice u/s 142 (1) is also send to the client. Client in persuance to the notice under the same section filled the revised return and caliming the refund of tax amount.

Client come to us on a later stage. And at this stage he can go to the CIT (appeal) can you suggest me the better answer along with the relevant case law so that i can help the client in getting his refund.Is there anmy relief in the income tax provisions.

Replies (2)

Hitesh Kothari

Chartered Accountant M.No. - 134239

326 Points Joined January 2009

Dear Hema,

Based on the information given :

As per Income tax Prov revised return can be filed only in case where the original return was filed on or before the due date as applicable. Since original return was filed after the due date and later on revised return to give the effect of ommission of exemption was filed.In such case revised return will not be termed as valid return.

Here the Qn comes whether the AO has accepted the revised return, if yes then he is obliged to issue the refund along with the intimation u/s 143(1). And He is also required to issue the Intimation u/s 143(1) before proceeding for assessment u/s 143(3) through issuing notices u/s 142(1) {But he can not issue intimation u/s 143(1) after issuing notice u/s 143(2) or 142(1)}. If in this case if he does not issue the refund then Assessee can file an application with RTI cell of Income tax Department.

A Formal request can be made to the AO to consider the exemption which was not claimed in the original return.

If the AO has passed the order based on the Original return, then rectification application u/s 154 can also not be filed. In this case only remedy available with Assessee is to file revision application before the Commissioner u/s 263 instead of going in appeal before CIT (A).

Final option available is to file an appeal before CIT (A).

Regards

Hitesh