Valid loss return principles: a voluntarily filed return remains effective if filed on time and meeting statutory requirements.

A voluntarily filed loss return was treated as a valid return where it was furnished within the permissible time for the relevant assessment year and satisfied the statutory requirements of section 139(3). Service of notice under section 143(2) did not invalidate the return. The court therefore upheld the return's validity and answered the referred question in the affirmative, against the assessee.

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Issues: Whether the loss return filed for the assessment year 1961-62 was a valid return.

Analysis: The relevant assessment year was 1961-62, and the return was filed on 17 February 1966. Since the assessment was completed on 28 March 1966, both the filing of the return and the assessment were within the time relevant to that assessment year. The return was a loss return furnished under section 139(3), and the requirements of that provision were satisfied. The fact that notice had been served under section 143(2) did not render the voluntarily filed loss return invalid. On these facts, the return was to be treated as a valid return under section 139.

Conclusion: The loss return was valid and the answer to the referred question was in the affirmative, against the assessee.

Final Conclusion: The reference was answered by upholding the validity of the return and affirming the Tribunal's view.

Ratio Decidendi: A voluntarily filed loss return is valid where it is furnished within the permissible time for the relevant assessment year and satisfies the statutory requirements applicable to a return under section 139.

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