9911796707
TMI Blog2003 (1) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 return under section 139(1) has been filed within the time allowed under sub-section (1) of section 139 for filing the return or within such further time as may be allowed by the ITO – We answer the question referred in the affirmative, that is, in favour of the assessee and against the Revenue. - - - - - Dated:- 14-1-2003 - Judge(s) : G. SIVARAJAN., J. M. JAMES. JUDGMENT The judgment of the court was delivered by G. SIVARAJAN J. - The following question of law is referred under section 256(1) of the Income-tax Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal by the Commissioner of Income-tax (Appeals), Cochin. However, in further appeal by the assessee, the Tribunal held that the assessee is entitled to carry forward the loss of the year 198687, and directed the Assessing Officer accordingly. Learned standing counsel for the Revenue appearing for the applicant submitted that since the assessee has not filed the return within the time specified in section 139(1) of the Act as contemplated under section 80, the assessing authority is perfectly justified in rejecting the assessee's claim for cal1ry forward of the loss of the assessment year 1986-87. Standing counsel further submitted that though the assessee has filed an application for extension of time and since the Assessing Officer h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h is not chargeable to income-tax, shall furnish a return of his income, during the previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed. Under clause (a) of sub-section (1) of section 139, in the case of every person whose total income in respect of which he is assessable under this Act, includes any income from business or profession, the return shall be filed before the expiry of four months from the end of the previous year, or where there is more than one previous year, from the end of the previous year which expired last before the commencement of the assessment year, or before the 30th day of June of the assessment year, whichever is later. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r relevant to the previous year during which the loss was sustained, a return of loss in the prescribed form and verified in the prescribed manner and containing such other particulars as may be prescribed, and all the provisions of this Act shall apply as if it were a return under sub-section (1). Thus, it can be seen that the provisions of section 80 and section 139(1) provide for extension of time for filing the loss return and if the loss return is filed within the extended period, the claim for carry forward or set-off of loss has to be allowed. In the present case, admittedly, the assessee has made an application for extension of time on July 30, 1986, well before the expiry of the time specified in section 139(1), and the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... right in law in holding that the assessee-company was not entitled to carry forward of loss computed for the assessment year 1985-86. In that case, the assessee-company claimed to have made an application in Form No. 6 for extension of time on June 28, 1985, for filing the return which was due to be filed on June 30, 1985. Time was sought up to September 30, 1985. The return was filed on June 28, 1985, before that date. The Income-tax Officer did not allow to carry forward the loss determined on the ground that the returns were not filed on or before the due date. This was confirmed by the Commissioner of Income-tax (Appeals) and by the Tribunal. The court observed that once the assessee has applied on Form No.6 for extension of time for fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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