The Kolkata High Court in the case of Tata Metaliks Ltd. vs. C.I.T. III, Kolkata, being ITA No. 301 of 2005, has held that an assessee can file his revised return even after intimation under section 143(1) has been served upon him by the department.
Facts and circumstances of the case:
The Revenue did not accept the revised return filed by the assessee thereby treating it as an invalid return.
The Assessee stated that his return was intimated to have been accepted under section 143(1) of the Income Tax Act on 8.8.2000. The assessee contended that it was not completion of the assessment regarding such return filed by him. The assessee prayed for filing a revised return on 31.3.2001 which was within the time provided in Section 139(5) of the said Act.
The Assessee relied up on the decision given by of the Hon’ble Supreme Court in the case of the Assistant Commissioner of Income Tax vs. Rajesh Jhaveri Stock Brokers Pvt. Ltd., 291 ITR 500(SC).
It was submitted by the counsel appearing on behalf of the assessee that the assessment cannot be said to have been completed on the issuance of intimation under Section 143(1) of the Act. The Punjab and Haryana High Court in Tarsem Kumar vs. Income Tax Officer and others, 256 CTR (P&H 116) rendered similar judgment.
Arguments made by the Revenue:
The counsel appearing on behalf of the Revenue submitted that by the intimation dated 8.8.2000 the assessee was intimated that its original return was accepted. Thereafter the Assessing Officer did not seek any more particulars from the assessee relating to the provision of Section 143(2) of the Act.
In such circumstances, the assessment was completed and accepted by the assessee who then asked for filing his revised return on the last day available to him. As per opinion of the Revenue, the revised return was not accepted as in the facts and circumstances of the case, the assessment was concluded. The Revenue relied on the decision of Haryana Financial Corporation and Another vs. Jagdamba Oil Mills and another in 2002(3) SCC 496) and that of State of Orissa and Others. vs. Md. Illiyas, 2006(1) SCC 275 to controvert the judgments relied upon by the assessee.
Provisions of section 143(1) of the Act:
After successful assessment of income tax returns by the department, intimation under section 143(1) of the Act is sent. Intimation under section 143(1) is normally treated as completion of assessment of income tax returns for the year unless there is any tax due from the assessee.
It was held by the Hon’ble High Court at Kolkata that Section 143 of the Act has undergone many changes from time to time. The Tribunal had relied on the case of CIT vs. Punjab National Bank (supra) wherein similar discussions were done regarding assessment under Section 143(1) of the Act wherein it was held that it could not be said that assessment was completed based on intimation issued.
Section 143(1) of the Act contemplates that an assessment where under the Assessing Officer shall serve a notice on the assessee requiring him to attend his office on a date specified therein or to produce any evidence on which the assessee may rely in support of his return. Thereafter the Assessing Officer shall make an assessment by a written order after considering all materials. As such, the provision for assessment for the purpose of issuance of intimation under section 143(1) of the Act cannot be said to be completion of assessment.
In view of the aforesaid reasons the appeal was decided in favour of the assessee and against the Revenue and was allowed.