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Issues:
1. Whether the assessee is entitled to carry forward the assessed loss due to late filing of the return. 2. Interpretation of provisions under section 139(3) and section 139(4) of the Income-tax Act, 1961. 3. Comparison of judicial decisions regarding the entitlement to carry forward losses based on the timing of return filing. 4. Determination of the applicability of provisions of section 72 and section 80 in allowing the carry forward of losses. Detailed Analysis: 1. The main issue in this case is whether the assessee is entitled to carry forward the assessed loss despite the late filing of the return. The Commissioner (Appeals) directed the Income Tax Officer (ITO) to carry forward the loss, citing relevant case laws. The revenue contended that the assessee did not comply with the strict provisions of section 139(3) of the Income-tax Act, 1961, as no application for extension of time was filed. The departmental representative argued that the return filed within the extended period should not be treated as filed within the original prescribed time. However, the counsel for the assessee argued that the return was filed within the time allowed under section 139(4), justifying the carry forward of the loss. 2. The interpretation of provisions under section 139(3) and section 139(4) of the Income-tax Act, 1961, was crucial in determining the entitlement to carry forward losses. High Courts in different regions had conflicting views on this matter. While some courts supported the revenue's position that timely filing under section 139(3) was necessary, others held that filing within the extended period under section 139(4) sufficed for carrying forward losses. The Tribunal, after considering various judgments, found no material difference between section 22(2A) of the 1922 Act and section 139(3) of the 1961 Act, ultimately ruling in favor of the assessee's right to carry forward the loss. 3. The Tribunal analyzed multiple judicial decisions from different High Courts, including the Supreme Court, to determine the entitlement to carry forward losses based on the timing of return filing. The conflicting views highlighted the importance of compliance with statutory timelines for filing returns. Ultimately, the Tribunal followed the majority view of High Courts, allowing the assessee to carry forward the loss despite the delayed filing of the return under section 139(4). 4. In determining the applicability of provisions under section 72 and section 80, the Tribunal rejected the revenue's argument that it was premature for the assessee to claim carry forward of loss in the relevant year. The Tribunal emphasized that the Commissioner (Appeals) acted within jurisdiction in allowing the carry forward of loss, as challenging the ITO's decision was necessary. The Tribunal partially allowed both the assessee's and the revenue's appeals, affirming the entitlement of the assessee to carry forward the loss despite the delayed filing of the return.
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