9911796707
TMI Blog1984 (7) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Act, 1961." 2. For the assessment year 1979-80, the assessee submitted Form No. 6 on 29-6-1979 and sought extension of time for filing the return up to 31-12-1979. The return was filed by the assessee on 31-12-1979 claiming loss of Rs. 1,08,69,070. The ITO vide his order dated 8-9-1982 computed the business loss at Rs. 1,01,33,687 but did not pass any order for carry forward of the business loss computed by him. 3. On appeal, the Commissioner (Appeals), following the decision of the Calcutta High Court in the case of Presidency Medical Centre (P.) Ltd. v. CIT [1977] 108 ITR 838, directed the ITO to carry forward the business loss computed by him. Aggrieved, the department has come up in appeal before the Tribunal. 4. Shri R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the return, the time for filing the return shall be deemed to have been extended up to 31-12-1979. It was thus submitted that the return filed on 31-12-1979 was a valid return under section 139(1) as it was filed within the time extended by the ITO. It was thus submitted that for this simple reason alone, the ITO should have given direction for carry forward of the business loss computed by him. The second limb of the arguments advanced before us by the assessee was that even if it is assumed for the sake of argument that the time for filing the return was not extended, in that event the return filed by the assessee was a valid return under section 139(4) with the result, that by virtue of the ratio of the decision of the Calcutta High Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... va v. R.G. Nitsure 1981 Tax LR 542. It was held in this case that if the department does not desire to grant the assessee's application for extension of time, it is the duty of the department to inform the assessee accordingly well in advance so that the assessee is put on his guard that unless he files his return within the prescribed time, the penal consequences are liable to follow. If the department chooses not to reply to the assessee's application within the time applied for by the assessee, time is deemed to be extended as prayed for by the assessee and he would be justified in assuming that his application has been granted by the department. 7. Even assuming that in the instant case time for filing the return shall not be deemed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... within the period originally prescribed by the statute. On the contrary, the section contains a provision for payment of interest where the return is filed beyond, the prescribed date even though within the extended period. That is evidence of the fact that the return filed during the extended period is not regarded by the statute as filed within the time originally prescribed..." 8. The above observations were made by the Hon'ble Supreme Court in an entirely different context in the case arising out of the penalty proceedings drawn up under section 271(1) of the Act. These observations, in our opinion, do not go to support the contention put forth on behalf of the department that in case of a return filed under section 139(4) the busines ..... X X X X Extracts X X X X X X X X Extracts X X X X
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