Carry forward of business loss cannot be denied solely for late filing where statutory loss provisions permit it.

Business loss determined by the assessing authority could not be denied carry forward merely because the return was not filed within the time prescribed under section 139(3) of the Income-tax Act, 1961. The analysis contrasted section 139(3) with section 80, which governs allowance of carry forward of loss, and noted that the corresponding provisions in the 1922 Act and the 1961 Act were materially similar. On that basis, the earlier Supreme Court ruling remained applicable. The denial of carry forward was unsustainable, and the assessee was entitled to carry forward the business loss in accordance with law.

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Issues: Whether the assessee's business loss could be denied carry forward on the ground that the return was not filed within the time prescribed under section 139(3) of the Income-tax Act, 1961.

Analysis: The loss had been determined by the assessing authority, and the question was whether non-compliance with the filing time under section 139(3) by itself could defeat carry forward. The provision relied on by the Revenue was contrasted with section 80 of the Income-tax Act, 1961, which governed the allowance of carry forward of loss. The Tribunal further noted that the corresponding provisions under section 22 of the Indian Income-tax Act, 1922 and section 139 of the Income-tax Act, 1961 were materially similar, so the earlier Supreme Court ruling continued to apply.

Conclusion: The denial of carry forward was unsustainable, and the assessee was entitled to carry forward the business loss in accordance with law.

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