Carry forward of loss under tax law depends on statutory filing conditions, and the Revenue's jurisdictional challenge failed.

Carry forward of business loss depends on compliance with the filing and assessment conditions under Section 80 read with Section 139(3) of the Income-tax Act, and the controversy concerned whether an assessed loss different from the loss claimed in the return could still be carried forward. The High Court followed the connected appeal and held the issue in favour of the assessee, rejecting the Revenue's challenge on that statutory question. It also held that the Revenue's objection that the Assessing Officer had exceeded jurisdiction in refusing carry forward after earlier directions did not survive, so the challenge failed on all questions of law.

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Issues: (i) Whether loss determined by the Assessing Officer, being different from the loss claimed in the return, could be carried forward in view of Section 80 read with Section 139(3) of the Income-tax Act, 1961. (ii) Whether the Tribunal erred in holding that the Assessing Officer exceeded jurisdiction in refusing to allow carry forward of loss after directions in the earlier round.

Issue (i): Whether loss determined by the Assessing Officer, being different from the loss claimed in the return, could be carried forward in view of Section 80 read with Section 139(3) of the Income-tax Act, 1961.

Analysis: The questions framed in the connected appeal had already been answered against the Revenue. The same statutory controversy arose here, concerning the entitlement to carry forward loss when the loss assessed differed from the loss claimed in the return.

Conclusion: The issue was answered in favour of the assessee and against the Revenue.

Issue (ii): Whether the Tribunal erred in holding that the Assessing Officer exceeded jurisdiction in refusing to allow carry forward of loss after directions in the earlier round.

Analysis: The Court followed its decision in the connected appeal and held that the Revenue's challenge did not survive on the jurisdictional question either.

Conclusion: The issue was answered in favour of the assessee and against the Revenue.

Final Conclusion: The appeal failed on all questions of law and was dismissed, leaving the decision in favour of the assessee undisturbed.

Ratio Decidendi: Loss can be carried forward only in accordance with the statutory conditions governing filing and assessment of loss returns, and the Revenue cannot sustain a contrary challenge once the questions of law have been conclusively answered against it.

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