(b) Answer the following: (i) Vegetable Ltd. filed its return of income for the A.Y. 2023-24, on 15 th December 2023. On 2 nd January 2024, the…

(a) First Alternative (i) The due date of filing return of income of Vegetable Ltd for the A.Y.2023-24 is 31 st October, 2023 since it is a company. However, it filed its return of income on 15.12.2023, which is a belated return. If any omission is discovered even in a belated return, the same can also be revised up to 31.12.2023 being the date 3 months prior to the end of the relevant assessment year i.e. 31.03.2024 or completion of assessment, whichever is earlier. However, it cannot file a revised return on 02.01.2024 since it is beyond 31.12.2023. Hence, the action of accountant of Vegetable Ltd is not valid. (ii) Since Mr. Mahendra is a resident individual, not being a company or a person whose accounts are required to be audited under section 44AB for the P.Y. 2023-24, and therefore he can file his return of income for A.Y. 2024-25 through a Tax Return Preparer. (b) Second Alternative An updated return can be furnished for the previous year relevant to the assessment year at any time within 24 months from the end of the relevant assessment year. Accordingly, the following are the suggestions to Rani with respect to updated return on 16.5.2024 for A.Y. 2021-22, A.Y. 2022-23 and A.Y. 2023-24: A.Y. 2021-22: Since the period of 24 months from the end of A.Y. 2021-22 expired on 31.3.2024 updated return cannot be furnished on 16.5.2024 for A.Y. 2021-22. A.Y. 2022-23: For A.Y. 2022-23, updated return can be furnished up to 31.3.2025. Thus, updated return can be furnished on 16.5.2024. Since updated return would be furnished after the expiry of 12 months but before 24 months from the end of 31.3.2023, additional income tax would be payable @50% of aggregate of tax (after taking into consideration tax deducted at source) and interest payable. Accordingly, Rani is required to pay additional income-tax in addition to the tax payable of 5,60,000, interest and late fee of 5,000. Alternate answer: The main solution has been worked out in line with the provisions of section 140B taking tax payable as the net figure of tax after adjusting TDS. However, since the term "tax payable” used in the ITR form for updated return is before the adjustment of TDS, TCS, Advance tax, interest payable etc., it is possible to take a view that the amount of tax payable of 5,60,000 is before adjusting TDS of 10,00,000. In such case, since the refund of 4,40,000 would arise, updated return cannot be furnished for A.Y. 2022-23. A.Y. 2023-24: For A.Y. 2023-24, updated return can be furnished up to 31.3.2026. Thus, updated return can be furnished on 16.5.2024 Since updated return would be furnished before the expiry of 12 months from the end of 31.3.2024, additional income tax would be payable @25% of aggregate of tax (after taking into consideration tax deducted at source and self-assessment tax paid) and interest payable. Accordingly, Rani is required to pay additional income-tax of 1,80,000 i.e., 25% of 7,20,000 (₹ 6,30,000 +90,000) in addition to tax payable of 6,30,000, interest payable of 90,000 and late fees of 5,000. Alternate answer: The main solution has been worked out in line with the provisions of section 140B taking tax payable as the net figure of tax after adjusting TDS and self-assessment tax paid. However, since the term "tax payable” used in the ITR form for updated return is before the adjustment of TDS, TCS, Advance tax, interest payable etc., it is possible to take a view that the amount of tax payable of 6,30,000 is before adjusting TDS of 2,00,000 and self-assessment tax paid of 1,00,000. In such case, Rani is required to pay additional income-tax of 1,05,000 i.e., 25% of 4,20,000 [₹ 3,30,000 (₹ 6,30,000 - 2,00,000 - 1,00,000) +90,000] in addition to tax payable of 3,30,000, interest payable of 90,000 and late fees of 5,000.