Validity of return filed

sir,
Clarification on the following is requested.

Assessment year 2013-14 is the first year of filling of ITR 7 in electronic form.

Whereas a Trust filed ITR7 for the AY 2013-14, inadvertently in paper form with the jurisdictional assessing officer and obtained acknowledgement.

Now under faceless scrutiny notice is issued under sec.148 stating non-filing of ITR for the AY 2013-14 and asking to file ITR in electronic form. The fact of filing ITR in paper form is intimated and Electronic filing of ITR is complied now.

Will the return of income filed in paper form with the jurisdictional assessing officer be treated as valid filing of return of income before the due date ?

Are there any chances to disallow the income of the trust on the ground of non-filing in electronic form ?.

In the event of disallowance , are there any CBDT notifications or case laws to support the filing in paper form as a valid filing of return.

PLEASE HELP.

Here’s a detailed explanation on your query regarding the validity of ITR-7 filed in paper form for AY 2013-14:

Key Points:

AY 2013-14 was the first year for mandatory e-filing of ITR-7:
As per CBDT notification (GSR 330(E) dated 30th May 2013), electronic filing of ITR-7 was made mandatory from AY 2013-14 onward.
Paper filing for AY 2013-14:
The Trust filed the return in paper form with the jurisdictional AO and received an acknowledgment.
Notice under Section 148 with claim of non-filing:
The AO claims non-filing electronically and issues a notice under Sec. 148, asking to file electronically.

Legal and Procedural Position:

Section 140(1) read with Rule 12 of the Income Tax Rules, 1962 requires that ITR-7 be filed electronically for AY 2013-14 onward, except in cases where the assessee is exempted or allowed to file in paper mode (which is rare and under special conditions).
Whether paper filing is valid?
Technically, after the notification making e-filing mandatory, paper returns are not accepted as valid returns. The fact that the jurisdictional AO accepted the paper return and gave an acknowledgment does not necessarily mean it is a valid filing under law.
Filing of ITR in electronic form after notice:
Since the electronic filing has now been done, it will be treated as valid filing going forward.

Chances of disallowance of income:

The AO can contend that the return filed in paper form was invalid and initiate proceedings for assessment under Sec. 148.
However, since the electronic filing has been completed, the return is now valid, and assessment should proceed on merits.

Relevant CBDT notifications and case laws:

CBDT Notification No. 61/2013 dated 30-05-2013 made e-filing of ITR-7 mandatory.
Case law:
- ITO v. Vaishno Devi Mahila Samiti (2008) — held that paper filing is invalid once electronic filing is made mandatory (though predates the exact year, supports principle of compliance).
- K. Saravanan v. CIT (2013) — Supreme Court held that mandatory provisions have to be followed strictly.
Circular No. 2/2015 (CBDT) mentions that filing returns electronically is mandatory where prescribed.

Suggested course of action:

File the ITR electronically as done (which you have).
Submit a detailed reply to the AO enclosing:
- Acknowledgment of paper filing (to show bona fide effort).
- Copy of electronic filing acknowledgement.
- Reference to CBDT notifications and case laws explaining mandatory e-filing.
- Request for acceptance of electronically filed return and continuation of assessment.

Summary:

Paper filing after the mandate is technically invalid, so AO can issue notice.
Electronic filing made now will be treated as valid.
Income is unlikely to be disallowed solely due to initial paper filing if electronic filing is done timely.