Finality of earlier-year section 80J deficiency bars challenge in later-year set-off proceedings.

A deficiency computed under section 80J in an earlier assessment year, once left unchallenged, attains finality and forms the basis for carry forward and set-off in later years. The assessee must contest any objection to that computation by appeal, revision, or other proper remedy in the earlier year's assessment; it cannot reopen the same determination in proceedings for a subsequent year merely because set-off is claimed then. The reference was answered against the assessee and in favour of the Revenue.

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Issues: Whether the assessee could challenge in the assessment proceedings for a subsequent year the computation of deficiency under section 80J made in the assessment order for an earlier year, when no appeal was filed against that earlier assessment.

Analysis: The deficiency under section 80J arose from the assessment for the earlier year and the amount determined in that assessment was the amount available for carry forward and set-off in later years. If the assessee was aggrieved by the computation of deficiency, the proper course was to challenge the assessment for the earlier year by appeal, revision, or other appropriate remedy. Having allowed that assessment to attain finality, the assessee could not reopen or dispute the earlier determination in the course of assessment or appeal for the subsequent year in which set-off was claimed.

Conclusion: The assessee could not challenge the computation of deficiency under section 80J for the earlier assessment year in the proceedings for the subsequent year. The issue was answered against the assessee and in favour of the Revenue.

Final Conclusion: The reference was answered in the negative, and the Revenue succeeded on the question referred.

Ratio Decidendi: A deficiency determined in an earlier assessment year, if not challenged by the assessee in proceedings against that assessment, attains finality and cannot be reopened in the assessment or appeal for a subsequent year merely because set-off is claimed in that later year.

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