Return

Filing — If assessee rectifies defect in return even after expiry of fifteen days or further period allowed, but before assessment is made, AO may condone delay and treat return as valid return, held by MumHC in Crawford Bayley & Co v Union of India & Ors — In favour of: The assessee.

The problem has arisen in the present case since for AY 2009–2010 arrangements were not made by the Income Tax Department for the verification of returns uploaded electronically by digital signature. Such an arrangement has now been made from AY 2011–2012.

The Income Tax Department, though, made a provision for the electronic filing of returns; the ITR­V Form containing the due verification of the return of the assessee was required to be remitted only by ordinary post. The assessee has furnished adequate material before the Court in support of its contention that having filed the return electronically, it had also submitted the ITR­V form by ordinary post. The assessee has done so on 5 April 2010, 18 May 2010 and 18 November 2010. The communication issued by the Income Tax Department that the return was not filed is thoroughly misconceived. The order of assessment for AY 2009–2010 has still not been passed. Hence, the provisions of s 139(9) can be fulfilled by permitting the assessee to file a verification of the return before the Assessing Officer within a period of one week from today.

Decided on: 1 December 2011.