Carry forward of loss requires strict filing within time; belated loss returns cannot be compelled for consideration.

Section 139(3) of the Income-tax Act, 1961 requires a loss return for carry forward to be filed within the time allowed under section 139(1). The omission of the earlier extension power found in the 1922 Act was treated as deliberate, and section 80 was read to confirm that carry forward is a statutory concession available only when loss is determined on a return filed under section 139. The court noted that the deeming language treating such a return as one under section 139(1) does not revive any power to extend time. Where the assessee seeks only carry forward, strict compliance with the filing deadline is necessary, and belated loss returns are not entitled to compulsory consideration.

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Issues: Whether a writ of mandamus could be issued directing the Income-tax Officer to entertain and consider belated returns of loss filed only to obtain the benefit of carry forward of losses.

Analysis: Section 139(3) of the Income-tax Act, 1961 requires a return of loss, where carry forward is claimed, to be furnished within the time allowed under section 139(1). The omission in the 1961 Act to preserve the earlier power of extension available under section 22(2A) of the Income-tax Act, 1922 was treated as deliberate and material. Section 80 further shows that carry forward is a statutory concession and can arise only when loss is determined in pursuance of a return filed under section 139. The Court held that the words stating that all provisions of the Act apply as if the return were under section 139(1) do not revive any power to extend time. Where the assessee seeks only the benefit of carry forward, strict compliance with the prescribed time is necessary.

Conclusion: The belated loss returns were not entitled to compulsory consideration for carry forward purposes, and no mandamus could issue to direct the officer to entertain them.

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