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Issues: Validity of loss return filed for the assessment year 1961-62
Analysis: The judgment by the Andhra Pradesh High Court revolved around the validity of a loss return filed for the assessment year 1961-62. The assessee, an individual, voluntarily filed a return showing a net loss on February 17, 1966. Subsequently, the Income-tax Officer made an assessment on March 28, 1966, determining the total income. The Appellate Assistant Commissioner canceled the assessment, stating that the return was not valid as no notice had been served under relevant sections. The Appellate Tribunal, however, deemed the return valid and directed a reevaluation. The main contention was that the return was filed beyond the prescribed period. The court held that since the assessment was completed within four years from the end of the assessment year, and the return was filed within time, it was valid. The court also considered the provisions of section 139(3) of the Income-tax Act, which allow for the filing of a loss return if certain conditions are met. In this case, the assessee voluntarily filed a loss return in the prescribed manner, fulfilling all requirements under the section. The Income-tax Officer had also allowed the assessee to file the return, indicating compliance with the provisions. Therefore, the court concluded that the return should be deemed valid under sub-section (1) of section 139. In conclusion, the court held that the loss return filed by the assessee for the assessment year 1961-62 was valid. The Appellate Tribunal's decision was upheld, and the court answered the question in the affirmative, ruling against the assessee. No costs were awarded in the judgment.
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