"Petitioner's Claim Granted under Income-tax Act Section 119(2)(b)" 'sClaim

The Court held that the petitioner's request falls within the scope of the expression "claim" under section 119(2)(b) of the Income-tax Act, 1961, and directed the Board to reconsider the matter. The petition was allowed, and the rule was made absolute.

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Issues involved:
The interpretation of section 119(2)(b) of the Income-tax Act, 1961 regarding allowing claims for losses, unabsorbed depreciation, and relief by way of investment allowance pertaining to the assessment year 1977-78.

Judgment Summary:

The petitioner filed an application u/s 119(2) seeking direction to allow their claim for losses, unabsorbed depreciation, and relief by way of investment allowance for the assessment year 1977-78. The Board rejected the application stating that section 119(2)(b) does not cover belated returns for determining losses, and the matter is regulated by other sections. The petitioner challenged this decision, arguing that the Board's rejection was on irrelevant grounds and cited Circular No. 446 of 1985. The respondents contended that there is no power to extend time for filing returns u/s 80 of the Act. The Court considered the scope of section 119(2)(b) which allows the Board to authorize consideration of claims after the specified period for avoiding genuine hardship. The Court held that the petitioner's request falls within the scope of the expression "claim" under section 119(2)(b) and directed the Board to reconsider the matter. The petition was allowed, and the rule was made absolute.

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