Voluntary return under section 139(4) supported carry forward of loss where service of reassessment notice was not proved.

The Tribunal's factual finding that no evidence showed service of notice under section 148 meant the assessee's returns were treated as voluntary returns under section 139(4) of the Income-tax Act, 1961. That characterisation supported the assessee's entitlement to carry forward loss, and there was no material to disturb the finding. The claimed loss carry forward was therefore not disallowed on the ground that the returns were involuntary.

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Issues: Whether the assessee's returns were voluntary returns under section 139(4) of the Income-tax Act, 1961, so as to permit carry forward of loss, and whether any question of law arose from the Tribunal's finding that notice under section 148 had not been served.

Analysis: The Tribunal recorded a finding of fact that there was no evidence of service of notice under section 148 of the Income-tax Act, 1961. On that basis, the returns filed by the assessee were treated as voluntary returns. In the absence of any material to disturb that factual finding, the entitlement to carry forward the loss followed from the return being treated as voluntary.

Conclusion: The returns were to be treated as voluntary returns under section 139(4) of the Income-tax Act, 1961, and the claimed carry forward of loss was not disallowed on the ground that the returns were involuntary.

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