Section 135A — the law in short
What the courts have decided on section 135A, in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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e-Verification Instruction 2(i) of 2024
CBDT Circulars & InstructionsCuts both waysValidity unconfirmed
A compliance campaign message arrived and nothing was done about it. What does the department do next, and does an updated return filed late in the day count for anything?
It becomes a reopening, and yes, the updated return is credited against the figure. The Directorate of Income Tax (Systems) tells officers that what the e-Verification machinery hands them is "Information" within the statutory list, that they are to invoke s.147 and issue the s.148 notice in those cases, and that the case will sit in one of two buckets - no updated return filed, or an updated return filed during the verification without fully reconciling the mismatch. In the second bucket the amount treated as escaping is reduced by the additional income the assessee has actually shown. Two things must be said on the face of this. The instrument is an internal communication of the Directorate of Income Tax (Systems) which does not appear to have been published as departmental material and could not be traced in a subscription research database; the copy relied on here comes from an unofficial host. And nothing in it dispenses with the s.148A stage.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.