In the case of Anagha Vijay Deshmukh v. DCIT, the assessee had filed her income tax return electronically for the relevant assessment year claiming carry forward of long-term capital loss. She later filed a revised return claiming the same loss at a higher amount. However, the lower authorities denied her claim on the grounds that the original return filed by the assessee was invalid due to her failure to send the acknowledgement to the Central Processing Unit (CPC).
The lower authorities argued that the revised return was, in fact, a belated return filed beyond time under section 139(1) read with section 139(3). The procedural requirement of furnishing the acknowledgement of an electronically filed income tax return is only a directory requirement, and it cannot be equated with not filing a return at all. Although the assessee did not furnish the acknowledgement of the return to the CPC at the material time, she filed the same later on with a request to condone the delay.
It was held that since the requirement of furnishing the acknowledgement of an electronically filed income tax return is only a procedural requirement, it could not invalidate an otherwise valid return filed under section 139(1). Once a revised return is filed within the time permitted under section 139(5), it substitutes the original income tax return in all respects. Therefore, since the assessee furnished a revised return within the stipulated period claiming the loss at a higher level, the enhanced amount of loss of Rs. 6,14,456/- would be considered for carry forward to the next year, and the revised return would substitute the original return in all respects, including the aspect of the date of filing.
In conclusion, The Income Tax Return (ITR) cannot be deemed invalid as long as the assessee’s request for condonation of delay in submitting the Income Tax Return Verification (ITR-V) is under consideration. The timely submission of ITR-V is a critical procedural requirement for electronic filing of returns and is necessary for the proper and accurate processing of returns. The Central Processing Unit (CPC) plays a crucial role in this process, and non-compliance with the requirements could result in legal consequences. Until the request for condonation of delay is either accepted or rejected, the validity of the ITR cannot be questioned. It is essential for taxpayers to take advise of CA in gurgaon and understand the legal provisions and comply with the requirements of filing ITR in a timely and accurate manner to avoid any adverse consequences.
