Shri Vallabh Glass Works Ltd. vs Income Tax Officer, Companies Circle VIII and Others

G.T. Nanavati, J.—The petitioner is a public limited company. It submitted a return of income in August 24, 1978. The Income Tax Officer in terms of section 144B of the Income Tax Act, 1961, forwarded a draft of the proposed order of assessment to the assessee on March 30, 1981. The assessee filed its objections on April 10, 1981. In view of the objections filed by the assessee, the Income Tax Officer forwarded the draft order together with the objections to the Inspecting Assistant Commissioner. Hearing was fixed before the Inspecting Assistant Commissioner on June 17, 1981. Before that the petitioner had submitted a revised return of income to the Income Tax Officer on June 15, 1981. So on the 17th, it pointed out to the Inspecting Assistant Commissioner that it had filed a revised return. The Inspecting Assistant Commissioner ignoring the revised return filed by the petitioner, passed a final assessment order on June 23, 1981. As the petitioner''s revised return has not been taken into consideration, it has filed this petition challenging the order passed by the Inspecting Assistant Commissioner and the demand notice issued pursuant thereto.

What is submitted by learned counsel for the petitioner is that an assessee has a right to submit a revised return, if he discovers any omission or any wrong statement in his earlier return. He further submitted that if such a return is filed before the assessment is made, then the same is required to be considered. As the Inspecting Assistant Commissioner ignored the same totally even though the fact of filing of the revised return was brought to his notice, the order passed by him must be regarded as illegal and bad. Obviously, when the Act permits the filing of a revised return, it is expected to be considered by the assessing authority, if the same is filed before the order is made by it; otherwise, the very purpose of giving such a right would be frustrated. Learned counsel for the respondents did not deny the fact that the revised return was filed before the assessment order was passed by the Inspecting Assistant Commissioner. It is also not denied that this fact was brought to the notice of the Inspecting Assistant Commissioner on June 17, 1981, at the time when the petitioner was called for hearing. In view of this undisputed fact, it will have to be held that the Inspecting Assistant Commissioner committed an error in not taking into consideration the revised return filed by the petitioner. The order passed by him, therefore, will have to be quashed and set aside.

In the result, this petition is allowed. The impugned order of assessment, exhibit "F", and the demand notice, exhibit "G", are quashed and set aside. The concerned Income Tax Officer is now directed to complete the assessment proceedings after taking into consideration the revised return. Rule is made absolute accordingly with no order as to costs.