Statutory right of appeal requires actual loss computation; mere refusal to determine loss is not appealable.

An order by the Income-tax Officer merely refusing to determine loss because the return was filed late was not appealable under section 30 of the Indian Income-tax Act, 1922. The court construed the order by substance and held that appeal lay only against an actual computation of loss under section 24; where no loss was computed, the statutory right of appeal did not arise. Precedents cited by the assessee could not create an appellate remedy where the statute gave none. Any substantive right to carry forward loss was separate from the existence of an appeal against this order.

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Issues: Whether an order of the Income-tax Officer dropping proceedings under section 22(2) of the Indian Income-tax Act, 1922, without determining the amount of loss, could be appealed under section 30.

Analysis: The order was examined on its substance and not merely its form. On a true construction, the Income-tax Officer had not computed the assessee's loss at nil or rejected the loss claim on merits; he had only declined to determine the loss because the return was filed beyond time. Since section 30 provided an appeal only against the amount of loss computed under section 24, the existence of an appeal depended on there being an actual computation of loss. The precedents relied upon on behalf of the assessee did not alter this position, because they did not create a right of appeal where the statute conferred none. The court also noted that the assessee's substantive right, if any, to carry forward loss was distinct from the availability of an appellate remedy against this order.

Conclusion: The order was not appealable under section 30, and the question was answered against the assessee and in favour of the revenue.

Ratio Decidendi: A right of appeal exists only where the statute expressly provides it, and an order merely refusing to determine loss does not become appealable as a computation of loss unless the Income-tax Officer has actually computed the loss.

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