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Revised Return

Senthilraja (Chartered Accountant) (57 Points)

13 January 2011

Can revised return be filed for a tax audited partnership firm for a revision in Profit sharing ratio and remuneration which was overlooked at the time of filing of return? If so filed any problems will come?

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12 Replies

CA Sandeep Kumar (Audit Assistant) (804 Points)
Replied 13 January 2011

revision of return should be done only if there is any change in tax payable/refundable , if either of two, then revise, if there is no need for revision.

wait for other members for reply

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Senthilraja (Chartered Accountant) (57 Points)
Replied 14 January 2011

I don't think revised return can be filed only if there is any change in Tax payable.

Pankaj Arora (Learner) (3134 Points)
Replied 14 January 2011

ya agree with senthilraja

m janakiraman (manager) (33 Points)
Replied 14 January 2011

YES U CAN FILE REVISED RETURN

HASSAAN IQBAL GONDALWALA (ARTICLE ASSISTANT) (48 Points)
Replied 14 January 2011

NO U CANT FILE A REVISE RETURN IN SUCH A CASE.

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CA Sandeep Kumar (Audit Assistant) (804 Points)
Replied 14 January 2011

revision of return arises only in case of change in tax provision.. either payable or refundable.. why would u file a revised return if there is no change in tax provision.. i agree there is no strict bar on revision

K Rajendra Prasad (CA) (133 Points)
Replied 14 January 2011

Section 139(5) deals with the Revised Return.Let us see what is the provision for filing revised return i.e section 139(5) .

139(5) If any person, having furnished a return under sub-section (1), or in pursuance of a notice issued under sub-section (1) of section 142, discovers any omission or any wrong statement therein, he may furnish a revised return at any time before the expiry of one year from the end of the relevant assessmentyear or before the completion of the assessment, whichever is earlier :..”

In the present situation revision is required in Profit Sharing Ratio and Remuneration which can be considered as a Wrong Statement and can be revised subject to the time limit. The revision may or may not change the tax payable.

CA K Rajendra Prasad

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 14 January 2011

Originally posted by : Senthilraja
	Can revised return be filed for a tax audited partnership firm for a revision in Profit sharing ratio and remuneration which was overlooked at the time of filing of return? If so filed any problems will come?

now revision means change of form 3CD, which may invite penalty upfront for you ............ as the deadline is over.

K Rajendra Prasad (CA) (133 Points)
Replied 14 January 2011

1. If you file any revised return it will replace the original return and it will be assumed as filed with in the due date.

2. If there is any mistake in 3CD a revised 3CD can be issued. This is a general option. But I never encountered such a situation.

3. Section 271B is not mandatory. if you can show reasonable cause penalty can be dropped.

4. It is always better to rectify the mistake before the department detects it. Always voluntary rectification is advisable.

5. Obtain a revised 3CD and file a revised return. Filing of revised return will not attract any problems. Infact it will solve future problems.

CA Sandeep Kumar (Audit Assistant) (804 Points)
Replied 14 January 2011

Originally posted by : K Rajendra Prasad
	Section 139(5) deals with the Revised Return.Let us see what is the provision for filing revised return i.e section 139(5) . 139(5) If any person, having furnished a return under sub-section (1), or in pursuance of a notice issued under sub-section (1) of section 142, discovers any omission or any wrong statement therein, he may furnish a revised return at any time before the expiry of one year from the end of the relevant assessmentyear or before the completion of the assessment, whichever is earlier :..” In the present situation revision is required in Profit Sharing Ratio and Remuneration which can be considered as a Wrong Statement and can be revised subject to the time limit. The revision may or may not change the tax payable. CA K Rajendra Prasad

139(1) is ''return of income'' , therefore reference to 139(1) in section 139(5) does mean change in statement of income declared by the assessee..

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vimal shah (PARTNER) (65 Points)
Replied 15 January 2011

Yes U have to file revised return for revision in Profit Sharing Ratio & Remuneration of Partners because Partners are also required to file their ROI and the amount received from Firm will not tally with Partnership Firm Balance.