Carry-forward of loss under section 139 allowed where the return was filed under section 139, not confined to section 139(3).

Where the material version of section 80, read with section 139, did not yet confine loss carry-forward to a return filed under section 139(3), a return filed under section 139 was sufficient to support determination of loss and its carry forward. Legislative history and the earlier 1922 Act regime showed that the later-amended restriction relied on by the Revenue was not applicable to the assessment year in question. The assessee was therefore entitled to carry forward and set off the loss, and the question was answered in favour of the assessee.

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Issues: Whether the assessee was entitled to carry forward and set off the loss where the return was not filed in accordance with section 139(3) and the loss had nonetheless been determined.

Analysis: The relevant version of section 80, read with section 139 as it stood for the assessment year in question, did not then require an express reference to section 139(3). The legislative history showed that, before the later amendment, a return filed under section 139 generally was sufficient for determination of loss and its carry forward. The comparison with the earlier regime under the 1922 Act and the successive amendments to sections 80 and 139(3) showed that the restriction pressed by the Revenue was not applicable to the period concerned.

Conclusion: The assessee was entitled to carry forward and set off the loss. The question was answered in the affirmative, in favour of the assessee and against the Revenue.

Final Conclusion: For the relevant assessment year, a loss determined on a return filed under section 139 could be carried forward and set off notwithstanding the absence of compliance with the later-amended requirement of section 139(3).

Ratio Decidendi: Where, at the material time, section 80 referred to a return filed under section 139 without specifically confining the benefit to section 139(3), a belated return filed under section 139 could still support determination and carry forward of loss.

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