Difference between Fresh Claim and Revision in the claim:
|Revision of claim
|Fresh claims were never claimed in the return of income. In many situations, it has been noticed that the taxpayers sometimes fail to claim or short claim certain deductions/exemptions in the original Income tax returns filed.
|In ‘revision of claim’, the claim has already been made in the return of income, but not made as per provisions of law and as such, needs revision. The evidence for the same is already on record, but the section/mode/method/quantum of deduction needs revision.
1. Deduction for preventive medical check-up not claimed in ITR – 1
2. Deduction in section 80C is claimed to be Rs 40,000/- however actual investment was Rs 60,000/-. So, for Rs. 20,000/- claim under section 80C would be a fresh claim.
Claim of Rs 80,000/- for medical premium is shown in deduction under section 80C but actually, it pertains to section 80D.
Revision in return and amendment in return:
A revised return is not for an amendment in return. In case the assessee deliberately omitted the particulars of income and made wrong statements in the original return, then the revised return will not serve the purpose.
In the above circumstances, the Assessing Officer has the power to treat the revised return as non-est.
It is pertinent to mention here that Assessing Officer is competent to reject the revised return only during the course of assessment proceedings. The consideration of the revised return is part of a composite exercise of an assessment and the Assessing Officer, therefore, can reject or accept the revised return during the assessment proceeding.
Fresh claim in revised return:
Section 139(5) is applicable when there is a “discovery of any omission” or “wrong statement” by the assessee in the original return of income. The word ‘discovers’ used in section 139(5) connotes discovery of some omission or wrong statement in return of income of which the assessee was not aware at the time of filing the original return of income.
The provisions of section 139(5) contemplated that the assessee could file the revised return:
- when the assessee ‘discovered any omission or any wrong statement.
The word ‘omission’ means an unintentional act or include performing what the law required; the word ‘wrong statement’ includes in its scope ‘a statement which was not observant to the knowledge of the person making it; and the word ‘discover’ would take in its ambit ‘that which was hidden, concealed or unknown’.
- If the assessee deliberately omitted the particulars of income and made wrong statements in the original return, the revised return would not bring the case within the scope of section 139(5).
- Further, the requirement is that this omission and wrong statement in the original return must be due to bona fide inadvertence or mistake on the part of the assessee on the basis of evolution or material on record.
It was therefore, necessary to ascertain as to whether there was any wrong statement made in the return of income originally filed by the assessee and whether the assessee was not aware of such wrong statement at the time of filing the original return. For this purpose, the claim made by the assessee in revised return of income, vis-à-vis the return of income filed originally to be examined on merit to ascertain whether there was any wrong statement made in the original return of income of which the assessee was not aware at the time of filing the original return of income.