AO shall consider Valid Revised Return while Completing Assessment: ITAT [Read Order]

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT)has held that the Assessing Officer should consider a valid revised return while completing the assessment.

The assessee, Rohit Infra Projects Pvt was a Civil/Government Contractor who had filed revised return which had not been taken into consideration by the AO. that is the assessee’s house and business premises were searched by the Income Tax Department and AO noted that the assessee for searched assessment year had filed the original return of income u/s 139(1) of the Income Tax Act 1961   declaring total income of Rs. Nil and losses of current year to be carried forward  and in pursuant to the notice issued by the AO  the assesseehad filed the copy of audit report along with other details. The AO after making enquiries with various parties by issuing notice u/s 133(6) of theIncome Tax Act 1961 to verify the genuineness of the transactions carried out by the assessee, which were returned unserved and the AO made an addition.

Dharan Gandhi, who appeared for the assessee contended that the AO had not considered the revised return of income filed by the assessee which he was bound to.

T. Sankar, who appeared for the revenue submitted that the assessee had filed the return but the AO who had framed the assessment might not be aware of the filing of the revised return.

The Bench of Gagan Goyal (Accountant Member) and Aby T Varkey (Judicial Member) held that the Assessing Officer had erred in not considering the revised return filed by the assessing officer. The bench allowed the petition and seaside the impugned order directing the Assessing officer to make fresh assessment considering the revised return. 

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