Revised IT Return [Section 139(5)]

1. Conditions to Furnish a Revised Return of Income under Section 139(5)

2. 'Completion of Assessment' in reference to Section 139(5):

3. Can a Return Filed under section 139(3) or 139(4A) or 139(4B) or 139(4C) or 139(4D) be Revised:

4. Can a Return Filed within the time extended by CBDT be Revised:

5. Can a Return Furnished in response to Notice under Section 142(1) be Revised:

6. Can Revised Return be further Revised:

7. Revised Return substitutes the Original Return:

8. Can a Return be Revised after receipt of Notice under Section 143(2) / Show cause notice under section 144:

1. Conditions to Furnish a Revised Return of Income under Section 139(5)

If certain conditions are satisfied, a person may furnish a revised return of income under section 139(5).

The following conditions one has to satisfy—

1. Which Return can be Revised -

If any person, having furnished a return under section 139(1)/(4), discovers any omission or any wrong statement therein, he may furnish a revised return. From the assessment year 2017-18, even a belated return submitted under section 139(4) can be revised.

2. Omission or Wrong Statement -

Revised return can be filed only if the assessee discovers any omission or wrong statement in return originally filed.

3. Time-Limit -

   Revised return can be filed at any time before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.

For the assessment year 2019-20, a revised return can be filed up to March 31, 2020. If, however, the assessment is completed before March 31, 2020 (say on December 15, 2019), then revised return can be filed before December 15, 2019.

2. 'Completion of Assessment' in reference to Section 139(5):

The word assessment used in section 139(5) will refer to assessment made under section 143(3) and section 144. Assessment made under section 143(1) will not be treated as assessment for this purpose as such return can be revised even after the intimation under section 143(1) has been served.

Further, the return can be revised before the date of passing the order under section 143(3) or section 144 and not till the date of service of such order.

3. Can a Return Filed under section 139(3) or 139(4A) or 139(4B) or 139(4C) or 139(4D) be Revised:

As already stated that a return of loss submitted under section 139(3) or a return submitted under section 139(4A) or 139(4B) or 139(4C) or 139(4D) is deemed as if it were a return under section 139(1).

Therefore, a return submitted under section 139(3) or 139(4A), etc. can be revised under section 139(5).

4. Can a Return Filed within the time extended by CBDT be Revised:

Return filed within the period extended under section 119 i.e. extended by the CBDT beyond the due date mentioned under section 139(1) is a return filed under section 139(1).

It can therefore be revised under section 139(5).

5. Can a Return Furnished in response to Notice under Section 142(1) be Revised:

The notice under section 142(1) to file a return of income can be issued by the Assessing Officer to the assessee only after the due date mentioned under section 139(1). Thus return filed in response to a notice under section 142(1) is though filed after the due date prescribed under section 139(1) but as per section 139(5), such return can be revised. However, if the return in response to notice given under section 142(1) is furnished after the time allowed in the notice, it will be a return submitted under section 139(4) and such return cannot be revised as per the decision of the Supreme Court mentioned above.

Hence return submitted in response to notice under section 142(1) can be revised but any loss declared in either the original return filed in response to a notice under section 142(1) or in the revised return cannot be carried forward in view of section 80 read with section 139(3) as the original return has been filed after due date.

6. Can Revised Return be further Revised:

If the assessee discovers any omission or any wrong statement in a revised return, it is possible to revise such a revised return provided it is revised within the same prescribed time.

For example, if the return of income for assessment year 2016-17 is filed on 15.7.2016 and is revised on 15.4.2017 (before the assessment is completed), such revised return can still be revised at any time upto 31.3.2018, or before the completion of the assessment, whichever is earlier.

7. Revised Return substitutes the Original Return:

Once a revised return is filed, the originally filed return must be taken to have been withdrawn and substituted by the revised return. Thus where a return was filed under section 139(1) declaring income and later it is revised declaring a loss, the loss shall be allowed to be carried forward as the revised return shall substitute the original return which was filed with in time.

Similarly, where a return is filed declaring a loss within the time allowed under section 139(1) and such loss is increased in the revised return, such higher loss will be eligible for being carried forward.

8. Can a Return be Revised after receipt of Notice under Section 143(2) / Show cause notice under section 144:

As per the law (prior to the amendment made by the Finance Act, 2017, w.e.f. A.Y. 2018-19,) a return can be revised at any time before the expiry of one year from the end of the relevant assessment year or before the completion of assessment, whichever is earlier.

Issue of notice under section 143(2) or show cause notice under section 144 means that the assessment is not yet completed. Therefore, original return, if submitted within the due date, can be revised even after issue of such notice. But the penalty under section 271(1)(c) for concealment of income may be levied on the additional income disclosed in the revised return.