Taxation Times

November 2023

UJA | Taxation Times November 2023
2Article : Simplifying Tax Filing: Lowdown on New ‘Discard ITR’ Feature
3Case Laws 
4Circulars and Notifications: November 2023
5Tax Compliance December 2023
6Tax News from around the World
Picture of by Neha Raheja
by Neha Raheja

Senior Advisor - Direct & International Tax

In this edition of Taxation Times, we will go through the new feature introduced by the Income Tax Department called ‘Discard ITR’

In this month’s Taxation Times, we cover:

  1. An article sheds light on the new feature rolled out by the Income Tax Department called ‘Discard ITR’.
  2. Case Laws from various courts & jurisdictions;
  3. Tax Compliance Calendar – December 2023;
  4. Circulars & Notifications – November 2023;
  5. Tax News from around the world

We hope that you find this month’s edition of the Taxation Times useful. In case you have any feedback or need us to include any information to make this issue more informative, please feel free to write to us at

Happy Reading!
Best Regards,
UJA Tax Team 

Simplifying Tax Filing: Lowdown on New ‘Discard ITR’ Feature


In a bid to make filing taxes easy, the Income Tax Department has rolled out a new feature called “Discard ITR.” This nifty tool lets taxpayers toss out or delete an unverified original, belated, or revised income tax return (ITR) filed for Assessment Year (AY) 2023-24 and beyond. It’s like having a virtual eraser for your tax paperwork, giving you more say in how you handle your tax filings.

This feature is handy for ITRs that haven’t gotten the green light through verification yet. Verification is a big deal in the tax filing world because it confirms that you are who you say you are and that the info in your return is on the up-and-up.

Benefits of ‘Discard ITR’ Feature

1. Fixing Mistakes:

If you spot any mistakes or things you missed in your filed ITR before it’s verified, Just hit ‘Discard’ and file a fresh ITR with the right details.

2. Tweaking Tax Math:

If changes are required to be made in tax calculations, income, deductions etc. this feature might be useful.

3. Getting it Right:

The ‘Discard ITR’ feature is all about accuracy. It lets you set things straight before your ITR is considered final.

Let us understand more about ‘Discard ITR’ through some FAQs’

Q. 1: I filed my original ITR u/s 139(1) on July 30, 2023, but it has not yet been verified. Can I discard it?

A 1 :  Yes, user can avail the option of “Discard” for the ITRs being filed u/s 139(1) /139(4) / 139(5) if they do not want to verify it. User is provided a facility to file an ITR afresh after discarding the previous unverified ITR. However, if the “ITR filed u/s 139(1)” is Discarded and the subsequent return is filed after the due date u/s 139(1), it would attract implications of belated return like 234F etc., Thus, it is advised to check whether the due date for filing the return u/s 139(1) is available or not before discarding any previously filed return.

Q. 2 : I Discard my ITR by-mistake. Is it possible to reverse it?

A 2 : No, if ITR is Discarded once, it can’t be reversed. Please be vigilant while availing  Discarding option. If an ITR is Discarded, it means that, such ITR is not filed at all.

Q. 3: Where is the discard operation?

A 3: The user can find the Discard option in the below path: – Login; e-File; -Income Tax Return; e-Verify ITR; “Discard”

Q. 4: Is it mandatory to file a subsequent ITR if I “discarded” my previous unverified ITR?

A 4 : A user, who has uploaded the return data earlier, but has made use of the facility to discard such unverified return is expected to file subsequent an ITR later on, as it is expected that he is liable to file the return of income by way of his earlier action.

Q 5: I sent my ITR V to CPC, and it is in transit and has not yet reached CPC. But I don’t want to verify the ITR as I get to know that details were not reported correctly. Can I still avail of the “Discard” option?

A 5 : User shall not discard such returns, where the ITR-V has already been sent to CPC. There is an undertaking to this effect before discarding the return.

Q. 6: When can I avail this “Discard” option, and can I avail this “Discard” option multiple times or only once?

A 6: The user can avail of this option only if the ITR status is “unverified” or “pending for verification.”. There is no restriction on availing of this option multiple times. The precondition “ITR status” is “unverified” / “pending for verification.”.

Q. 7: My ITR filed for AY 2022–23 is pending verification. Can I avail myself of this “Discard” option?

A 7: The user can avail of this option only from AY 2023–24 onwards for the respective ITR. This option will be available only until the time limit specified for filing ITR u/s 139(1)/139(4) /139(5) (i.e., the 31st of December of the respective AY as of now).

Q. 8: I discarded my original ITR 1 filed on July 30, 2023, on August 21, 2023, and I want to file a subsequent ITR on August 22, 2023. Which section should I select?

A 8: If the user discards the original ITR filed under u/s 139(1) for which the due date of u/s 139(1) is over, they are required to select 139(4) while filing a subsequent return. As there is no prior valid return, the date of the original ITR / acknowledgement number is not applicable if the original ITR fields are not applicable. Further, if the user wants to file a revised return in the future, he needs to provide details of the “original filing date” and “acknowledgement number” of the valid ITR, i.e., the ITR filed on August 22, 2023, for filing the revised ITR.


The ‘Discard ITR’ feature is a welcome addition to the income tax filing process, empowering taxpayers with greater control over their tax filings. By giving you the option to toss out unverified ITRs, the Income Tax Department is all about making sure your tax journey is smooth and on point. So, get familiar with this feature and use it when needed to keep your tax filings in tip-top shape.

Case Laws

Alstom (Thailand) Ltd. V/s Assistant Commissioner of Income Tax [2023] 156 51 (Delhi - Trib.)
Reference: Section 9 of the Income-tax Act, 1961, read with article 5 of DTAA between India and Thailand


The assessee, a tax resident of Thailand, was engaged in the business of manufacturing train control and signalling systems for mass transit systems. It formed a consortium with BTIN and entered into a contract with Delhi Metro Rail Corporation (DMRC) for the design, manufacture, supply, installation, testing, and commissioning of train control and signalling systems. In terms of the contract, the assessee made an offshore supply of goods and equipment to DMRC from outside India and received a certain amount of consideration for such a supply.

The assessing officer was of the view that the assessee had a service PE in India, through which it executed the contract. Accordingly, out of the receipts from offshore supplies, the assessing officer attributed 10 percent of the total receipts as profits of the PE and, accordingly, brought to tax the same.

The assessee filed its objections before the Hon. Dispute Resolution Panel (DRP), which upheld the view taken by the Assessing Officer.

Finally, the assessee filed an appeal before the Hon. Tribunal.


Assessee, a tax resident of Thailand, made offshore supply of goods and equipments to an Indian company from outside India and received certain amount of consideration for such supply – Assessing Officer being of view that assessee had a service permanent establishment (PE) in India, through which, it executed contract attributed 10 per cent of total receipts as profits of PE and accordingly, taxed same – It was observed that assessee did not have any place of business in India and all business activities with respect to offshore supplies were carried outside India – Equipment supply had been manufactured at overseas manufacturing facility of assessee and sale of equipment had occurred outside India and payment had also been received by assessee outside India – Whether, therefore, impugned addition made by Assessing Officer was to be deleted.

In Favour of: The Assessee

Kumarbhai Manharlal Desai V/s Deputy/Additional/Assistant Commissioner of Income Tax [2023] 156 276 (Gujarat)
Reference: Section 144B, read with section 147, of the Income-tax Act, 1961


For the relevant assessment year, the Assessing Officer completed the assessment of the assessee under section 143(3).

Subsequently the Assessing Officer issued on the assessee a notice under section 148 seeking to reopen the aforesaid assessment.

The assessee in response to the notice filed return of income.

The Assessing Officer issued on the assessee a notice under section 142(1) dated 6-12-2021 calling for details and the assessee immediately responded the notice. The Assessing Officer did not proceed in the matter for more than three months. On 23-3-2022, with just seven days left before the assessment was getting time barred, the Assessing Officer issued a show cause notice to the assessee. A reply was filed on 26-3-2022. An opportunity of personal hearing was asked for and to which the assessee received an intimation on 27-3-2022 that a personal hearing through video conferencing would be conducted on 29-3-2022. When the assessee logged into the link, because of a technical glitch in the portal hearing could not take place. The Officer from the National Faceless Assessment Centre logged in and apologized to the assessee through chat box.

Since the assessment was getting time barred, the Assessing Officer passed assessment order under section 144B read with section 147 dated 31-3-2022. 

Held :

It is the case of the assessee that the officer from the National Faceless Assessment Centre logged in and apologized to him through the chat box. Obviously, these circumstances show that the assessee though had asked for a personal hearing through video conferencing, such opportunity was denied.

In the circumstances on the aforesaid ground alone the assessment order is set aside. The matter is remanded to the competent authority from the stage of giving personal hearing to the assessee through video conferencing. A fresh order be passed.

In Favour of: The Assessee (Matter is remanded)

Circulars and Notifications November 2023


CBDT issued a corrigendum to Notification No. 4 of 2021 regarding the submission of the Statement of Financial Transactions (SFT).

CBDT notifies an agreement between the Government of the Republic of India and the Government of Saint Vincent and the Grenadines for the exchange of information and assistance in tax collection with respect to taxes.


CBDT issues circular to condone the delay in filing Form 10IC for Assessment Year 2021-2022.

Press Release:

Gross Direct Tax Collections for FY 2023–24 up to November 9, 2023

CBDT resolves more than 46,000 public grievances and 7,000 grievance appeals between December, 2022 till July, 2023 under Special Campaign 2.0 for Swachhata and disposal of pending matters

Tax Compliance: December 2023

07 December 2023

  • Due date for deposit of tax deducted or collected for the month of November 2023. However, all sum deducted or collected by an office of the government shall be paid to the credit of the Central Government on the same day that tax is paid without production of an Income-tax Challan

15 December 2023

  • The due date for furnishing Form 24G by an office of the government where TDS/TCS for the month of September 2023 has been paid without the production of a challan.

  • The due date for issue of TDS Certificate for tax deducted under section 194-IB/194-IA/194M/194S is October 2023

Third instalment of advance tax for the assessment year 2024-25​

30 December 2023

  • The due date for furnishing the challan-cum-statement in respect of tax deducted under Section 194-IA/194-IB/194M/194S is November 20, 2023.
  • ​Furnishing of report in Form No. 3CEAD for a reporting accounting year (assuming reporting accounting year is January 1, 2022 to December 31, 2022) by a constituent entity, resident in India, in respect of the international group of which it is a constituent if the parent entity is not obliged to file report under section 286(2) or the parent entity is resident of a country with which India does not have an agreement for exchange of the report, etc.

31 December 2023

  • Filing of belated/revised return of income for the assessment year 2023-24 for all assessee (provided assessment has not been completed before December 31, 2023)​​

Tax News from Around the World

Multinational enterprises continue reporting low-taxed profit, even in jurisdictions with high corporate tax rates, underlining need for global tax reform

Developing countries secure bigger international tax role for UN

Economic outlook: A mild slowdown in 2024 and slightly improved growth in 2025

OECD GDP grows by 0.5% for the second quarter in a row

Apple dealt blow at top EU court over €14.3bn tax bill in Ireland

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