In the recent Supreme Court judgement, in the case of Shriram Investments1 (‘the Assessee’) it was held that the Assessment Officer (AO) cannot consider claims made in a revised return filed after the deadline for filing the revised ROI has expired.
The assessee filed a revised income tax return making certain claims after the expiry of the permissible period under Section 139(5) of the Income-tax Act.
The Tribunal initially directed the Assessing Officer to consider the claim in the revised return. The Assessing Officer was directed to consider the assessee’s claim regarding the deduction of deferred revenue expenditure.
Upon revenue preferring an appeal to the hon’ble High Court, order of the Tribunal was overruled, stating the claim was time-barred and that there is no provisions under the Income Tax Act 1961 to consider the claim of assessee.
The Hon’ble Supreme Court upheld the High Court’s decision, ruling that the Assessing Officer lacked jurisdiction to consider the appellant’s claim made in the revised return filed after the time limit expired.
Reference was made to various rulings, summary of which is as under:
In case of Goetze (India) Ltd. v. CIT (2006)2 in support of the objection pressed before us that it is not open to entertain fresh claim before the Income-tax Appellate Tribunal. According to him, the decision in National Thermal Power Co. Ltd. v. CIT 3 merely permits raising of a new ground concerning the claim already mentioned in the returns and not an inconsistent or contrary plea or a new claim.
__________________________________________________________________________
1 Shriram Investments vs CIT [2024] 468 ITR 372 (SC)
2 Goetze (India) Ltd. v. CIT [2006] 284 ITR 323 (SC)
3 National Thermal Power Co. Ltd. v. CIT [1998] SC
For detailed discussion on the above topic, please feel free to contact at devadhaantu@devadhaantu.in