Changes in sec 139(4) & 139(5) by Finance Act 2016 related to revision of belated ITR not applicable retrospectively: ITAT

In matter of Qayum Ismail Mukaddam vs CIT(Appeal), Income Tax Appellate Tribunal has held that changes brought about in section 139(4) and 139(5) of the Act by the Finance Act, 2016 was not intended to be applicable retrospectively. Prior to Finance Act, 2016 could not be revised.

It is observed that the assessee has filed his return of income and has also revised the returns on the same day declaring lesser income than that of the income declared in the original return. The assessee in its submission contended that due to oversight, the assessee has erroneously considered Form 16 of A.Y. 2013-14 for the purpose of filing tax return instead of considering Form 16 for the AY 2014-15. The assessee has further stated that he has filed his returns electronically by himself without availing the services of professionals and, hence, there was an error in considering Form 16 for A.Y. 2013-14 instead of AY 2014-15. The assessee further contended that the same may be verified by perusing the details disclosed in the said returns. It is also pertinent to point out that the assessee realizing that there was an error in the original return has immediately on the same day filed revised return.

The lower authorities have failed to consider the revised return for the reason that the assessee has filed his return of income belatedly thereby denying the claim of the assessee as the new provision of sections 139(4) and 139(5) of the Act were introduced in the Finance Act, 2016 which was not applicable to the assessee’s case. The assessee has relied on the various decisions of the Hon’ble Jurisdictional High Court and also the decisions of the Tribunal which on perusal was distinguishable on facts of the present case and was not on similar facts as that of the present appeal. It is also pertinent to point out that there are varied decisions of various Hon’ble High Courts which has taken contrary views on this issue. The assessee has not relied on any of the decisions of the Hon’ble Jurisdictional High Court in this issue. As the changes brought about in section 139(4) and 139(5) of the Act by the Finance Act, 2016 was not intended to be applicable retrospectively, we find no merit in the submission of the assessee.

Therefore, ITAT as of the considered view that there is no infirmity in the order of the ld. CIT(A) and appeal filed by the assessee was dismissed.