Capital loss carry-forward remains available when a timely original return is validly revised to report the loss.

A capital loss reported through a revised return may be carried forward where the original return was filed within the due date under Section 139(1) of the Income-tax Act. Section 139(5) permits revision of a return, and the revised return substitutes the original return for the relevant assessment proceedings. Filing the revised return after the due date does not remove the benefit of the original return's timely filing. The statutory condition for carrying forward the capital loss is therefore treated as satisfied, allowing set-off in subsequent years.

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Issues: Whether capital loss reported in a revised return could be carried forward where the original return was filed within the time prescribed under Section 139(1) of the Income-tax Act, 1961.

Analysis: Section 139(5) permits revision of an original return and a revised return substitutes the original return for the relevant assessment proceedings. The original return was filed within the prescribed due date under Section 139(1), although the revised return reporting the capital loss was filed later. The subsequent revision did not deprive the assessee of the benefit attached to the timely filing of the original return. Accordingly, the statutory requirement for carrying forward the loss was satisfied.

Conclusion: The assessee was entitled to carry forward the capital loss of Rs. 2,99,750 for set-off in subsequent years.

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