Page 20 - Union Budget, 2022

Union Budget, 2022

Illustration:1 – Applicability of updated returns – Sec 139(8A)

Scenario Possibility of filing Rationale
updated return
ITR for AY 20-21 was not filed. Can be filed by 31.03.2023 It is not a loss return because loss is
Computation confirms that there will be a different from unabsorbed
claim of Rs.2,50,000 of unabsorbed depreciation. [CIT v. Shri
depreciation with no tax liability or refund. Subhulaxmi Mills Ltd [2001] 249
ITR 795 (SC)]
ITR for AY 20-21 was not filed. Cannot be filed It would result in tax refund.
Computation confirms that final income
tax payable is lesser than TDS as per 26AS.
Search was initiated in AY 24-25. ITR was Cannot be filed AY 22-23 falls within 2 AYs
not filed for AY 22-23. Assessee intends to preceding the AY in which search
file updated ROI for AY 22-23 by was initiated. Further, under existing
31.03.2025. provisions of Sec 148 and 149 itself,
when reopening of assessment is
made pursuant to search or survey
or requisition, AO may issue a
notice to file an original ROI for the
relevant AYs under contention.
ITR for AY 21-22 was filed and is under Can be filed before If the said intimation or notice is
processing. Due date to file revised return intimation u/s 142(1) or issued, then assessment is deemed to
has expired. Assessee finds that there is notice u/s 143(2) is issued. be pending and hence, assessee
undisclosed income and consequently an would not be able to file the updated
increase in tax liability for the said AY. return.

Illustration:2 – Tax payment to be made before furnishing updated return – Sec 140B
Mr. A filed ROI for AY 21-22 within due date. However, he identifies that certain commission income was not
disclosed in the return. The payer of such income has deducted TDS at 5% u/s 194H. Mr. A intends to furnish
updated return u/s 139(8A) on 10.09.2023.

Tax liability as per the earlier return filed u/s 139(1):
Particulars Amount (in Rs.)
Profits or Gains from Business or Profession 12,75,470.00
Income from other sources -
Gross total income 12,75,470.00
Less: Deductions 1,50,000.00
Net income 11,25,470.00
Tax liability (computed) 1,56,147.00
Less: TDS 50,000.00
Less: Advance tax 1,50,000.00
Refund claimed 43,853.00
Note: Refund has been received by the assessee pursuant to furnishing of original return.

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