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4.3.2 During the appellate proceedings, the Ld. AR has made elaborate submissions claiming that no disallowance u/s. 14A can be made when no exempt income has been earned. Further, he relied on the decision of ITAT, Mumbai in appellant's own case for A.Y. 2006-07.

4.3.3 The most important issue to be decided is whether a return of income could be revised to claim debatable benefit or deduction. Further, what are the conditions to be fulfilled for filing valid revised return u/s. 139(5).

Based on the above, the company believes that provisions of Section 14A of I. T. Act, are not applicable to it and therefore no disallowance ought to be made u/s. 14A of the Act in the computation of income. Accordingly, the company has filed a revised return of income for not considering any disallowance u/s.MA of the Act as made in the original return of Income."

4.3.10 Now, it has to be seen whether there was any omission or wrong statement in the original return of income. Since, the disallowance of Rs.3,67,78,220/- u/s. 14A r.w Rule 8D is based on the audited books of account and worked out by the auditor, it cannot be said that there was a wrong statement. Further, there is no unintentional act or neglect to perform what the law requires. Therefore, there is no omission also. Hence, revised return is not a valid revised return u/s. 139(5). Importantly, the revised return is filed based on revised computation of income. No revised audit report has been filed along with the revised return.

4.3.12In the instant case, there is no bonafide inadvertence or mistake on the part of the assessee. Therefore, applying the ratio laid down by the Hon'ble High Court of Gauhati, it is held that the revised return filed by the appellant is not a valid revised return u/s. 139(5).

4.3.13 In the Note to the revised return it has been mentioned that the company has not earned any exempt income and the investments made by the company are strategic in nature. Therefore, revised return is filed by withdrawing disallowance u/s. .14A. It must be noted that these issues are debatable in nature. In the recent judgement, the Hon'ble High Court of Karnataka, in the case of Sharavathy Conductors (P) Ltd. vs. CCIT, 87 taxmann.com 244 (2O17), has held that revised return cannot be filed to make a debatable claim. Therefore, applying the ratio laid down by the Hon'ble High Court of Karnataka, it is held that the revised return filed by the appellant is not a valid revised return u/s. 139(5).