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TMI Blog2003 (1) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... filed within the time for which extension was sought from the Assessing Officer ?" The brief facts relevant for the purpose of the case are as follows. The respondent-assessee is a closely held company, carrying on the business of manufacture and sale of certain electronic items. The assessment year concerned is 1986-87, the relevant accounting period ended March 31, 1986. The due date for filing the return under section 139(1) of the Act was July 31, 1986. The assessee filed an application in the prescribed form on July 30, 1986, seeking for extension of time for filing the return till October 31, 1986. The Assessing Officer did not pass any order on the said application. The assessee, on the belief that the application was granted, file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have considered the matter and we find that the Income-tax Appellate Tribunal was perfectly justified in holding that the respondent-assessee is entitled to carry forward the loss claimed in the return. Section 80 of the Act introduced with effect from April 1, 1985, provides that "the return of loss must be submitted within the period prescribed under section 139(1) of the Act. Under section 80, no loss can be allowed to be carried forward and set off under section 72(1) or section 73(2) or section 74(1) or section 74A(3), unless such loss has been determined in pursuance of a return filed by the assessee under section 139. By virtue of the provisions of section 80, no loss would be allowed to be carried forward or set off, unless the ret ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to subsection (1) of section 139 enables the assessee to file an application in the prescribed manner seeking for extension of the date for furnishing the return and the assessing authority is given the discretion to grant such extension. Section 80 also provides that in order to allow the claim for carry forward or set-off of the loss, such return must be filed within the time allowed under sub-section (1) of section 139 or within such further time as may be allowed by the Income-tax Officer. In this context, it is also relevant to refer to the provisions of section 139(3) of the Act relied on by the Assessing Officer. The said sub-section also provides that, if any person who has not been served with a notice under sub-section (2), has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f time for filing the return is sought, the Assessing Officer is obliged to pass an order on such application. If the Assessing Officer, fails to pass such an order, the normal presumption is that the Assessing Officer has granted the extension sought for. In fact, the very question came up for consideration before this court in a different context under the provisions of section 17 A of the Agricultural Income-tax Act in Velimalai Rubber Co Ltd. v. Inspecting Assistant Commissioner of Agricultural Income-tax and Sales Tax [1991] 190 ITR 385 (Ker). This court, relying on the decisions of other High Courts, rendered in the context of the provisions of the Income-tax Act, particularly section 139 thereof, has held that the said decisions clea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cordingly answered the question in favour of the assessee. According to us, the Tribunal was perfectly justified in holding that when the assessee has made an application for extension of time for furnishing the return provided under section 139(1) of the Act, or under section 80 of the Act, and if the assessing authority has not passed any specific orders, the assessee is justified in believing that the extension has been granted. Admittedly, the assessee had filed the return before the extended period applied for. In the above circumstances, we are of the view that the Tribunal was perfectly justified in holding that the assessee is entitled to carry forward or set off the loss claimed in the return filed on October 23, 1986. In view of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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