Carry-forward of returned loss treated as nil computation, making the tax authority's communication appealable.

A communication by the assessing authority that finally denies carry forward of a returned loss is treated in substance as a computation of the loss at nil. Because the right to carry forward loss forms part of the substantive tax relief attached to loss computation, such a refusal is not merely administrative; it determines the assessee's loss position and extinguishes the benefit in later years. On that basis, the communication falls within the relevant appellate provision and is appealable, so the assessee's appeal is maintainable.

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Issues: Whether the Income-tax Officer's communication refusing to carry forward the returned losses amounted to an appealable order under the relevant appellate provisions and, in substance, to a computation of loss at nil.

Analysis: The communication did not merely refuse to entertain the returns; it recorded a decision that the losses would not be carried forward for set-off in subsequent years. On the statutory scheme, the right to carry forward losses is part of the substantive relief connected with the computation of loss, and a refusal that finally deprives the assessee of that benefit is treated as a determination of the loss position. The Court relied on the principle that where the assessing authority communicates that no loss will be carried forward, the effect is equivalent to computing the loss at nil, and such a decision falls within the scope of the appellate provisions.

Conclusion: The communication was an appealable order, and the assessee's appeal was maintainable.

Ratio Decidendi: An order or communication by the assessing authority that finally denies carry forward of a returned loss is, in substance, a computation of loss at nil and is appealable under the relevant appellate provision.

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