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TMI Blog1984 (8) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... ment year 1980-81, the assessee claimed set off in respect of share of loss from the firm, Indian Fabric Corporation, for the assessment years 1976-77, 1977-78 and 1979-80. The ITO, however, allowed the share of loss from this firm for the assessment year 1976-77 to be set off as the same had been determined in pursuance of a return filed for that year and allowed to be carried forward for set off in future. He, however, denied the benefit of set off in respect of the share of loss from this firm for the assessment years 1977-78 and 1979-80, as the assessee had not filed any returns of income for these years and no loss had been determined in pursuance of the same. 3. Aggrieved with the same, the assessee filed an appeal before the AAC, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed the returns within the statutory period and the assessments for those years had become time barred when the returns were filed. On these facts, the AAC noticed, that the High Court had concluded that the returns relating to 1952-53 to 1954-55, having been filed within the extended time limit and also having regard to the decision in CIT v. Kulu Valley Transport Co. (P.) Ltd. [1970] 77 ITR 518 (SC), that though a return disclosing a loss is not filed in time as per the general notice under section 22(1) or section 22(2A) of the 1922 Act, the provisions of section 24(1) and (2) of the 1922 Act should be taken into account for the purpose of granting relief to the assessee, and that the Tribunal was justified in directing the ITO to det ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the loss relating to earlier years and set off of the same. He further submitted that the Act enables the assessee only to claim set off in respect of losses relating to earlier years computed in pursuance of returns filed within the statutory time limits for those years. 5. After careful consideration of the rival submissions, the relevant provisions of the statute and the authorities cited, we are unable to agree with the proposition made on behalf of the appellant, that the ITO was bound to compute the loss relating to earlier years and set off the same, even though no returns had been filed in respect of those years under section 139. In this connection, a reference to the following provisions of the Income-tax Act is necessary to un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e had filed any returns relating to these years at least within the time allowed under section 139(4). While enquiring into this aspect, we, however, find that the assessee had not filed any returns relating to these years even within the extended time available to the assessee under section 139(4). When no return has been filed, section 80 provides a statutory bar against any loss, which has not been determined in pursuance of a return filed under section 139, being considered and set off in a subsequent assessment. For the sake of convenience, we would reproduce hereunder the provisions of section 80 : " Notwithstanding anything contained in this Chapter, no loss which has not been determined in pursuance of return filed under section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... returns were filed within the extended time limit under section 139(4) and, therefore, the ITO had a statutory obligation to compute the loss relating to those years, as per the interpretation of the Supreme Court in Kulu Valley Transport Co. (P.) Ltd.'s case. In the present case, no such returns had been filed by the assessee for the years in question. Therefore, section 80, referred to earlier, would automatically apply to the facts of this case, namely, that no loss which has not been determined in pursuance of a return filed under section 139 shall be carried forward and set off. We, are, therefore, unable to agree with Shri Dewani, the learned counsel for the assessee, that, section 80 read in the light of the decision of the Madras H ..... X X X X Extracts X X X X X X X X Extracts X X X X
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