Rolly Polly Exim Ltd Mumbai filed its original return for the previous year 2018-19 on 28th September, 2018 declaring loss of ₹22.50 lakh. However, the Manager (Taxation) noticed some calculation error in the original re

Rolly Polly Exim Ltd Mumbai had filed its loss return for AY 2018-19 under section 139(3) on 28-09-2018 before the time allowed under section 139(1) of the Income tax Act, 1961 being before 30th September, 2018. It can file its revised return within the time allowed under section 139(5) being before the expiry of end of the relevant assessment year or before completion of assessment, whichever is earlier. In this case, the assessment for AY 2018-19 was not complete and was yet to be competed and the end of the relevant assessment year expires on 31.3.2019. Rolly Polly Exim Ltd Mumbai had filed the revised return on 28.2.2019 which is within the time allowed under section 139(5). Section 139(3) makes it clear that the return of loss be filed within the time allowed under section 139(1). Once such a return is filed, all the provisions of the Act shall apply as if such return has been filed under section 139(1). In other words, a return filed under section 139(3) is deemed to be a return filed under section 139(1). In view of such a specific provision there is no further necessity in section 80 of the Act to refer to such provision. Hence, there is no reason to exclude the applicability of section 139(5) to a return filed under section 139(3). Therefore, a loss return filed under section 139(3) can be revised by filing a revised return under section 139(5) within the time allowed. Such loss as per the revised return can be carried forward, even though section 80 does not superficially provide for carry-forward of loss which has been determined to pursuance of return filed under section 139(5). The contention of the Assessing Officer is therefore, not correct. This has been supported by the Madras High court in the case of CIT vs. Periyar District Co-op. Milk Producers Union Ltd (2004) 266 ITR 0705. As per the decided case of Dhampur Sugar Mills Ltd, it was held that the revised return u/s 139(5) substitutes and steps into the shoes of the original return from the date, original return was filed.