Extension of time for belated return filing under income-tax law can still be sought after expiry, preserving loss carry-forward.

Section 139 of the Income-tax Act was construed as allowing an assessee to seek extension of time for filing a return even after the original period had expired, because the statutory power to enlarge time was read broadly and beneficially. Form No. 6 was treated as covering both applications made before expiry and those made after expiry, so the belated filing did not defeat the request for extension. On that basis, the assessee was allowed to carry forward the loss, and the Revenue's objection failed.

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Issues: Whether the assessee could seek extension of time for filing the return after expiry of the original period under section 139 of the Income-tax Act, 1961, and whether the assessee was entitled to carry forward the loss when Form No. 6 was filed along with the belated return.

Analysis: Section 139 was held to empower the officer to enlarge the time for filing returns whenever an application for extra time is made; the use of the word "extension" does not require that the request must necessarily be made before expiry of the original period. The provision was construed as beneficial to the assessee, and the prescribed Form No. 6 was read as covering both situations, namely where time had not expired and where it had already expired.

Conclusion: The assessee was entitled to the benefit of extension and to carry forward the loss; the Revenue's contention failed.

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