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Issues: (i) Whether the assessment order passed under section 144 of the Income-tax Act, 1961 had attained finality in the absence of any appeal. (ii) Whether, in the facts of the case, there remained any scope to carry forward unabsorbed depreciation and losses once they stood absorbed in the assessment for the earlier year.
Issue (i): Whether the assessment order passed under section 144 of the Income-tax Act, 1961 had attained finality in the absence of any appeal.
Analysis: The assessment for the relevant year had been completed after considering the brought forward losses, and no appeal had been filed against that order. In these circumstances, the order became final and could not be reopened in appeal.
Conclusion: The issue was answered against the assessee and in favour of the Revenue.
Issue (ii): Whether, in the facts of the case, there remained any scope to carry forward unabsorbed depreciation and losses once they stood absorbed in the assessment for the earlier year.
Analysis: Once the assessment order had attained finality and the unabsorbed depreciation and business loss were taken to have been set off in the ex parte assessment, no further scope remained to carry them forward for the subsequent year on the facts presented.
Conclusion: The issue was answered against the assessee and in favour of the Revenue.
Final Conclusion: The reference was disposed of by holding that the assessment order had attained finality and that no carry forward of unabsorbed depreciation and losses was available on the facts, thereby upholding the Revenue's stand.
Ratio Decidendi: A completed assessment order that has not been appealed against attains finality and cannot be reopened in reference proceedings merely to revisit the carry-forward or set-off effect of losses already taken into account.
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