9911796707
TMI Blog1968 (11) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... returned profits and losses was as under: Loss Profit 1960-61 Rs. Rs. Determined loss 1,90,982 --- 1961-62 Loss 92,079 --- 1962-63 Profit &nb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ained losses pending in appeals for the assessment year 1960-61. -- 35,857 Less items not seriously disputed-Assessment years 1959-60 and 1960-61. --------- -- 4,28,500 Loss for the assessment year 1960-61. -- 92,079 Add loss for the assessment year 1961-62. --------- -- 5,20,579 Loss -- 2,14,843 Less income-Assessment year 1962-63 as per return. --------- -- 3,05,736 Loss-Assessment year 1962-63. -- 6,171 Less income 1963-64 as per return. --------- -- 3,00,565 Loss -- 31,912 &nb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hes the factual foundation upon which the Income-tax Officer must act. To that factual foundation he must apply the law in order to determine the net assessable income for the purpose of assessing the tax payable. While making this summary determination of the net assessable income he must give effect to the depreciation carried forward and to the loss carried forward. It is contended by the petitioner that it is not open to the Income-tax Officer, when proceeding under section 141, to examine whether the provisions of the Income-tax Act have been followed by the assessee when computing his assessable income. Now, it may be that an adjudication of complicated questions of law is not contemplated within the scope of the Income-tax Officer's powers under section 141. But certainly, in our opinion, he is entitled to see that there is no patent departure from the provisions of the Act in the computation of the assessable income by the assessee. It seems clear to us that any patent deviation from the law by the assessee in drawing up the return can be corrected or disregarded by the Income-tax Officer. It should not, we think, be open to an assessee to claim that his return must be acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer or to the further stage of appellate determination by an Appellate Assistant Commissioner or even by the Income-tax Appellate Tribunal, or to the still further stage of a reference in the High Court or an appeal before the Supreme Court. The loss as determined at the furthest stage to which the proceeding has reached is the loss which must be carried forward. It is not open to the assessee to say that the loss as determined by the Income-tax Officer in the assessment proceeding is not the loss to be carried forward because he has appealed against the assessment, and that, therefore, he is justified in falling back upon the loss as claimed by him when drawing up the return. A loss determined by the Income-tax Officer in the assessment proceeding remains a determined loss so long as it is not displaced by the order of a superior authority. In the instant case, the assessee claimed a loss of Rs. 4,64,357 when filing the return for the assessment year 1960-61. That loss was determined instead at Rs. 1,90,982 by the Income-tax Officer. It is the figure of Rs. 1,90,982 which must be considered as the loss to be carried forward in relation to the assessment year 1960-61. We are suppor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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