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TMI Blog1978 (7) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... ion is concluded by the decision of the High Court as well as the Supreme Court and the matter can be disposed of by a short order. Telster Advertising Pvt. Ltd., the assessee-company, was incorporated on October 31, 1963. For the first year it closed its account on March 31, 1964. For the assessment year 1964-65, it filed its income-tax return on October 9, 1964, disclosing loss of Rs. 11,600. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal, the following question has been referred to us for our determination: "Whether the assessee-company was entitled to carry forward to the following year the loss incurred by it in the assessment year 1964-65, to be set off against the profits of the subsequent years, when it had filed its return for the assessment year 1964-65 after the time prescribed by s. 139(3) of the I.T. Act, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r s. 24(2) of the Indian I.T. Act, 1922, though the returns were not filed within the time specified in the general notice under s. 22(1) and the time had not been extended by the ITO. No notice had been served on it under s. 22(2). By majority view, the Supreme Court held that the losses had to be determined and carried forward. By majority view it was also held that s. 24(2) confers the benefit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been made within the time prescribed if it is made within the time specified in s. 22(3). In other words, if s. 22(3) is complied with, s. 22(1) must also be held to have been complied with, If compliance has been made with the latter provision, the requirements of s. 22(2A) would stand satisfied. When the I.T. Act, 1961, was enacted, sub-s. (4) of s. 139 contained the following provisions: "1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ward as a matter of course under s. 72(1) read with s. 80 of the Act, even though the return was not filed within the time provided by s. 139(1). This view was taken by the Calcutta High Court after applying the principles laid down by the Supreme Court in Kulu Valley Transport Co. P. Ltd.'s case [1970] 77 ITR 518. This decision, therefore, in our opinion concludes the matter and both the taxing a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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