Answer

1. F

   Facts

   Practitioner commentary on Sec 276CC says filing an updated return within the 48 month window removes the Sec 139(1) default for prosecution. ITR-U is not allowed in some cases, such as where prosecution is already launched for that year. Check the latest text before relying on this.

2. P

   Provisions and law

   • Sec 276CC (now Sec 479)Prosecution for wilful failure to file a return on time; jail of 3 months to 2 years, or 6 months to 7 years where tax evaded exceeds ₹25 lakh
   • Sec 139(8A) (now Sec 263(6))An updated return (ITR-U) can be filed within 48 months from the end of the assessment year, with additional tax
   • Sec 140B (now Sec 267)Tax, interest and additional tax must be paid before an updated return is filed
3. A

   Analysis

   Filing ITR-U shows the income and pays the tax with additional tax, which is strong evidence against a wilful intent. The proviso reading reported for AY 2026-27 treats an updated return within the time as curing the Sec 139(1) default for prosecution, but this is a medium confidence point and should be checked with the Act text. If prosecution proceedings have already started for that year, ITR-U may be barred. Use it before a complaint is filed in court.

4. C

   Conclusion

   1. 1Check that no prosecution has been launched for the year.
   2. 2Compute tax, interest and additional tax.
   3. 3Pay and file ITR-U.
   4. 4Send the acknowledgement with your reply to the show cause.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.