Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 1990 (1) TMI HC This
Issues involved: The judgment deals with the issue of whether the assessee is entitled to the benefit of carry forward and set off of losses for earlier assessment years when returns of income were furnished in response to notices under section 148 but not under section 139 of the Income-tax Act, 1961.
Facts and Tribunal's Decision: - The assessments for the years 1970-71, 1971-72, and 1972-73 showed losses. - The Income-tax Officer declined to set off these losses against the income of 1975-76, citing that returns for the earlier years were not filed under section 139 but in response to notices under section 148. - The Tribunal upheld this decision, stating that losses not determined in returns filed under section 139 cannot be carried forward. Legal Provisions and Interpretation: - Section 80 of the Income-tax Act specifies that losses must be determined in returns filed under section 139 for carry forward and set off. - A notice under section 148 is deemed to be a notice under section 139(2), allowing the assessee to claim losses based on the return filed. - The judgment emphasizes the importance of legal fictions and the consequential rights that follow. - The issuance of a notice under section 148 initiates assessment proceedings, and the assessee retains the right to claim losses if returns are filed within the prescribed time. Precedents and Analysis: - Referring to a case where the Madhya Pradesh High Court allowed carry forward of losses filed in response to section 148 notices within the prescribed time. - In the present case, returns for 1970-71 and 1971-72 were filed after the prescribed period, leading to a negative answer for those years but a positive one for 1972-73. Conclusion: - The judgment rules in favor of the Revenue for 1970-71 and 1971-72, and in favor of the assessee for 1972-73. - The judges concur on the decision without any costs awarded. This judgment clarifies the significance of filing returns under specific sections for the carry forward and set off of losses, emphasizing the legal implications of notices under section 148 and the rights of taxpayers in such scenarios.
|