High Court of Tripura · Judgments and reasoned final orders
Tripura State Electricity Corporation Limited v. Principal Commissioner of Income Tax, Shillong
ITA No. 01 of 2023 ·
Valid revised return under section 139(5) filed after CAG audit comments during pending scrutiny: reference to section 139 in section 143(1)/(2) includes a revised return under section 139(5); ITAT erred in remanding without setting aside the assessment order dated 18.03.2016 that ignored the revised return.
1. FACTS OF THE CASE
For AY 2013-14, Tripura State Electricity Corporation Ltd. filed its original return under section 139(1) on 26.09.2013 declaring a loss of Rs. 182.05 crore. During CASS scrutiny after a section 143(2) notice dated 04.09.2014, the appellant filed a timely revised return under section 139(5) on 23.02.2015 following CAG audit comments. However, the AO completed the assessment on 18.03.2016 solely on the original return without referring to the revised return, disallowing Rs. 40.36 crore under sections 40(a)(ia), 68 and 37. The CIT(A) annulled the assessment for non-issuance of a fresh section 143(2) notice on the revised return; on Revenue's appeal, the ITAT Guwahati (ITA No. 297/GAU/2018, order dated 19.12.2022) set aside the CIT(A)'s order and remanded the matter to the AO without setting aside the assessment order dated 18.03.2016.
2. DISCUSSION BY THE COURT
Analysing sections 139(1), 139(5) and 143, the Division Bench held that once a valid revised return is filed within time under section 139(5), it substitutes the original return, and the reference to 'section 139' in section 143(1) and 143(2) encompasses both original returns under section 139(1) and revised returns under section 139(5). The Court held that the ITAT committed a clear error of law in remanding the matter to the AO to consider the revised return without setting aside the assessment order dated 18.03.2016 that had ignored the revised return.
3. JUDICIAL DECISION
Answering the second substantial question of law in favour of the appellant and partly allowing ITA No. 01 of 2023, the High Court set aside the assessment order dated 18.03.2016, modified the CIT(A) and ITAT orders, and remitted the matter to the AO to redetermine taxable income taking details from the revised return after granting due opportunity of hearing.
4. OUTCOME
Assessee (partly allowed) - Second substantial question of law answered in favour of the assessee; assessment order dated 18.03.2016 set aside and AO directed to redetermine income on the basis of the revised return under section 139(5).
5. AKHB REVIEW POINT
AKHB analysis: when a valid revised return under section 139(5) is filed during pending scrutiny (e.g., to give effect to statutory or CAG audit observations), the AO cannot frame an assessment on the superseded original return; any remand must first set aside the assessment order passed on the original return.
Source: AKHB analysis based on Paragraphs 25-38; PDF pp. 7-10
Source and verification
10-page official High Court of Tripura judgment PDF (20250814_TRHC010012182023.pdf).
Original PDF: 10 pages · SHA-256: 0bc98e4b2f5a1e4343e626c076410c98914feb961700ba5208f589ab8dc1df3c
Supplied source-reviewed note retained; original bytes and identity validation checked in this release. Substantive re-review is not claimed for this record.
Applies sections 139(1), 139(5), 143(1), 143(2) and 143(3) of the Income-tax Act, 1961 for AY 2013-14. Income-tax Act, 2025 equivalence is not verified.
Full primary judgment PDF read page-by-page and verified against the AKHB Google Drive repository. Comprehensive subsequent judicial treatment has not been independently verified.
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