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TMI Blog1984 (5) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... in response to notice issued to it by the ITO under s. 148 r/w s. 147 (a) of the IT Act. In the returns so filed on 15th Feb., 1979, the assessee company declared a loss of Rs. 35,110 for the asst. yr. 1974-75 and Rs. 53,340 for the asst. yr. 1975-76. The ITO, however, found that the assessee-company who had filed balance sheets and profits and loss accounts for each of the assessment years had declared only royalty receipts against which it had claimed expenses, these the ITO considered excessive. He observed that beside the assessee had not shown any receipt on account of the picture 'Neel Kamal' which was released earlier. He therefore, held that the assessee's accounts were not verifiable. He also pointed out that since the assessee ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee to determination of its business losses and carry forward thereof in accordance with the law. In support of the proposition. Shri Shah cited the decision of the Madras High Court in the case of CIT vs. Standard Motor Products of India Ltd. (1983) 35 CTR (Mad) 107 : (1983) 142 ITR 877 (Mad). He also referred to the decision of the Calcutta High Court in the case of Presidency Medical Centre (P) Ltd vs. CIT (1977) 108 ITR 838 (Cal). 5. Shri R.N. Vaze, the Departmental representative on the other hand, submitted that the returns filed by the assessee for the asst. yrs. 1974-75 and 1975-76 were neither under s. 139 (1) nor under s. 139(2) nor under s. 139 (4) of the Act, since each of the said section has laid down a statutory pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he returns within any of the aforesaid time limits was not entitled to the determination and "carry forward" of losses which were admittedly claimed for the first time in returns filed in response to notice under s. 148 r/w. s. 147(a). In this respect, the decision of the Madras High Court in the case of Standard Motor Products India Ltd., does not assist the assessee-company's contention, for in that case, the questions were whether in the reassessment proceedings the ITO can assess the entire income including the items falling under s. 147(b) and also whether withdrawal of excess depreciation in respect of machinery is permissible in reassessment proceedings. Similarly, reliance by the assessee 's counsel on the decision of the Calcutta H ..... X X X X Extracts X X X X X X X X Extracts X X X X
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