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Showing contexts for: revised return when valid in M/S. Shri Shakti Credits Ltd.,, Kanpur vs Department Of Income Tax on 8 August, 2014Matching Fragments
4. The assessee preferred an appeal before the ld. CIT(A) with the submission that the return was filed under section 139 of the Act and at the time of filing the revised return, the admitted tax liability was paid.
Therefore, provisions of section 140A(3) of the Act cannot be invoked. Finding force in the contention of the assessee, the ld. CIT(A) has deleted the penalty having observed that once valid revised return has been filed, it effaces and substitutes the original return of income and admittedly there was no unpaid tax liability as per the revised return of income. Therefore, there was no occasion to initiate proceedings under section 140A(3) of the Act. Accordingly, the penalty order was cancelled. The relevant observations of the ld. CIT(A) are extracted hereunder for the sake of reference:-
3.3.2 In this connection, apart from other arguments, the appellant company has brought to my notice the decisions of the Hon'ble Jurisdictional High Court in the case of M/s Miranjan Lal Ram Chandra jand also in the case of Amjad Ali Nazvi Ali (supra) for the proposition that once a valid revised return has been filed u/s 139(5) of the Act, it substitutes the original return of income. In its decision, in the case of Niranjan Lal Ram Chandra (supra), the Hon'ble Allahabad High Court had observed:
The Hon'ble High Court has ruled that after the revised return was filed, the admitted tax liability was different from what it was under
the original return.
3.3.4 In view of the discussion above and the cited case laws, I am of the considered view that once a valid revised return had been filed, it effaces and substitutes the original return of income. In the instant case, there was no unpaid admitted tax liability as per the revised return of income, thus, there could be no occasion for the A.O to initiate proceedings u/s 140A(3) of the Act. In this view of the matter, I hold that the levy of penalty proceedings u/s 140A(3) was without any legal basis and, therefore, the same is cancelled."