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TMI Blog2002 (12) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... that the view of the Appellate Tribunal that the assessee was entitled to carry forward of loss for the assessment year 1986-87 does not suffer from any infirmity and the view of the Appellate Tribunal is justified in law. Accordingly, we answer the question of law referred to us in the affirmative, in favour of the assessee and against the Revenue. - - - - - Dated:- 2-12-2002 - Judge(s) : N. V. BALASUBRAMANIAN., K. RAVIRAJA PANDIAN. JUDGMENT The judgment of the court was delivered by N.V. BALASUBRAMANIAN J.-The respondent herein is a firm and it filed the return of income on November 6, 1986, claiming that it sustained a loss of Rs. 5,27,420 for the assessment year 1986-87. The Assessing Officer lodged the return under section 13 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the circumstances of the case, the Appellate Tribunal is correct in law in holding that the Assessing Officer has to entertain the return which was filed belatedly and to allow carry forward of loss for the assessment year 1986-87?" We heard Mrs. Pushya Sitharaman, learned senior standing counsel for the Revenue. We are of the view that the Appellate Tribunal has found as a matter of fact that for the assessment year 1986-87, though the return ought to have been filed on or before June 30, 1986, the assessee applied for extension of time by filing an application in Form No. 6 under section 139(10) of the Act seeking extension of time to file the return till December 31, 1986. It was also found by the Commissioner of Income-tax (Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the absence of any such communication from the Assessing Officer, the assessee could not presume that time as sought for was granted. We are unable to accept the submission of learned senior standing counsel for the Revenue. We find that the uniform view taken by several High Courts is that if the assessee has applied for extension of time, when the Income-tax Officer has not rejected the said application and failed to communicate his view on the question of extension of time, it is open to the assessee to presume that the time sought for has been granted to the assessee. This court in CIT v. Tamil Nadu Agro Industries Corporation Ltd. [2002] 255 ITR 473, has held that when a request had been made by the assessee for extension of time a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the ratio of the decision of this court in CIT v. Tamil Nadu Agro Industries Corporation Ltd. [2002] 255 ITR 473, would apply and following the said decision, we hold that the Appellate Tribunal was right in holding that in the absence of any order passed by the Assessing Officer on the application for extension of time filed by the assessee, it is open to the assessee to presume that the time sought for by the assessee had been granted. Moreover, it is also relevant to mention here that section 139(10) of the Act came into force only from April 1, 1986. We are of the view that the power to grant extension of time under section 139(3) of the Act was available up to April 1, 1987. Since the application for extension of time was filed o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 518 has also held that since section 139(3) of the Act was amended with effect from April 1, 1987, the Income-tax Officer had the power to grant extension of time invoking the power under section 139(3) of the Act for the assessment year 1986-87. The Kerala High Court in Pigments India Ltd.'s case [1998] 230 ITR 518 also held that if the return was filed within the time, the assessee was entitled to the benefit of carry forward of loss. We, therefore, hold that the return filed by the assessee is within the time prescribed under section 139(3) of the Act and once we hold that the return, though it is a loss return, was filed within the time prescribed, the assessee is entitled to the benefit of carry forward of loss. We, therefore, hold ..... X X X X Extracts X X X X X X X X Extracts X X X X
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