Now Reading: Supreme Court: I-T revision plea cannot bypass return deadline
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Supreme Court: I-T revision plea cannot bypass return deadline
The Supreme Court has ruled that a revision petition under Section 264 of the Income Tax Act cannot be used to revise a self-assessment return after the statutory deadline has passed. A…
The Story in Brief
The Supreme Court has ruled that a revision petition under Section 264 of the Income Tax Act cannot be used to revise a self-assessment return after the statutory deadline has passed. A bench of Justices J B Pardiwala and K Vinod Chandran set aside a Bombay High Court order that had remanded the matter for fresh consideration.
The case involved M/s Om Siddhakala Associates, which filed a self-assessment return that led to a tax demand. The firm did not file a revised return within the allowed time but instead challenged the demand under Section 264. The Principal Commissioner rejected the plea, and the Supreme Court upheld that view, saying using Section 264 to revise a return after the deadline is an impermissible backdoor move. The court declined to rule on whether the tolerance limit under Section 43CA is retrospective.
The Indian Opinion
Some will paint this ruling as harsh on taxpayers, but the court merely enforced the law's plain text. The assessee had ample time to file a revised return but chose a revision petition instead. What gets lost is the court's deliberate refusal to decide whether the tolerance limit under Section 43CA is retrospective or prospective. That question remains open. Watch for the next case where a taxpayer raises it in a timely manner, not as an afterthought.
Source: deccanherald.com
This story was synthesised by AI from the source linked above.
