2003 (3) TMI 63 - HC - Income Tax

Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was correct in law in holding that the assessee is entitled to carry forward of business loss? - We are unable to appreciate the conduct of the Revenue in seeking reference in a matter where the answer is plain and unambiguous and ascertainable from a bare reading of the statutory provision. The return having been admittedly filed under section 139(4) of the Act, as noticed by the Commissioner, and when the return satisfies the requirements of section 80 as it stood at the relevant time which only provides that a return should have been filed under section 139, the reference is required to be and is answered in favour of the assessee and against the Revenue.

Summary

The High Court of Madras ruled in favor of the assessee regarding the carry forward of business loss for the assessment year 1984-85. The court emphasized that as the return was filed under section 139(4) of the Act, the assessee was entitled to carry forward the loss. The Revenue was ordered to pay costs of Rs. 2,000 to the assessee.