2002 (9) TMI 82 - HC - Income Tax

1. Whether, on the facts and in the circumstances of the case, the Tribunal is right in holding that the question as to whether a loss can be set off can arise only in the assessment of the succeeding year or years when there is a positive income against which such set off is claimed? - 2. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in vacating the directions of the Assessing Officer recorded in the assessment order to the effect that the loss shall not be carried forward? - We, answer the question referred to us against the assessee and in favour of the Revenue.

Summary

The High Court of Kerala ruled in favor of the Revenue in a case involving the carry forward of losses for assessment years. The court disagreed with the assessee's argument that the question of carry forward could only be decided in the succeeding year when set off was claimed. The court referred to a previous decision reversing the Tribunal's order and concluded that the assessee was not entitled to carry forward the loss due to late filing of the return. The judgment was forwarded to the Income-tax Appellate Tribunal, Cochin Bench.