Needed clarification regarding provisions of sec 153a(a)

This query is : Resolved

Sriram (Querist)
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15 May 2012 Wordings in this section are
“issue notice to such person requiring him to furnish within such period, as may be specified in the notice, the return of income in respect of each assessment year falling within six assessment years referred to in clause (b), in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed and the provisions of this Act shall, so far may be, apply accordingly as if such return were a return required to be furnished under section 139”

As per my understanding I have come to the following conclusion

1)As returns are to be furnished as per the provisions of sec 139, such returns will be considered as fresh returns & previously filed returns will not be considered while assessment.
2)Loss returns for any year or all the years of block period can be filed as per the provisions of sec 139(3).
3)Such losses can be carried forward & set-off, if returns filed within time limit prescribed u/s153A(a) notice.
4)Revised returns can be filed if returns are filed within time limit prescribed in the notice given u/s 153A(a).

Please clarify my views regarding the above sections (please quote decisions regarding the same if any). I don’t have any proof for my understanding. I came to conclusion on the plain reading of this section alone.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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15 May 2012 I beg to differ on these views:

The words that "all the provisions of the Act would apply to such return as if such return was a return required to be furnished u/s 139" have been used so that notice u/s 142 may be served on the assessee for making an assessment.

It does not mean that the return will be treated as a return filed u/s 139(1). The return is filed u/s 153A only.

These words are NOT for the benefit of the assessee.

Accordingly, the implications are as follows:

1. Returns are NOT to be filed as per provisions of Section 139(1). Return is to be furnished u/s 153A and not under Section 139(1).

2. I agree with the second view that an assessee can file a return of loss.

3. Filing of return for Carry forward and set off of loss is governed by Section 139(3) read with Section 80.

Section 80 provides that loss will be carried forward only if the return is filed as per Section 139(3).

Section 139(3) provides that the return should be filed within the time limit prescribed u/s 139(1), i.e., 31st July or 30the September of the relevant AY.

Section 139(3) DOES NOT MAKE A REFERENCE TO Section 153A.

So, if an assessee has not filed return u/s 139(1), he will not be allowed to carry forward his losses.

Filing a return u/s 153A does not entitle an assessee to carry forward losses which he was not allowed to in the first instance.

4. Revised return is governed by Section 139(5). Section 139(5) provides that only a return which is filed u/s 139(1) or in response to a notice u/s 142(1) can be revised.

Section 139(5) DOES NOT MAKE A REFERENCE TO SECTION 153A.

Accordingly a return filed u/s 153A CANNOT be revised for the same reason that a belated return [filed u/s 139(4)] cannot be revised.

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Sriram

Sriram (Querist)
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16 May 2012 With due respect to your interpretation... I will just give my base for how I came to the interpretation that I have made.

1)Secton 153A(1) starts with words "Notwithstanding to provisions of sec 139,147,148,149,151 & 153" and that should override all the provisions in section 139 & all the reference given in those sectons.
2)Then Section 153A(1)(a) gives specific provisions to application of Sec 139 with regards filing the returns... so all the provisions u/s 139 should apply... So all the sub sections of sec 139 i.e 1,1A,3,4,4A,4B,4C,4D,5 should apply wherever applicable.

This how I came to the above conclusion sir. And again with due respect to your interpretation, after posting my query I just searched in net & found these following posts.

https://www.caclubindia.com/experts/revised-return-u-s-153a-c-812975.asp
http://shubhamconsultants.wordpress.com/knowledge-center/taxation/income-tax/assessment-search-cases/

So sir now even I am confused... So anybody posting further, if possible please give reference to any notification, circulars, decisions in this regard.

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