2010 (8) TMI 596

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....nation of the following  question of law for the opinion of this court : "Whether the assessee will be entitled to the benefit for carry for- ward of loss to be set off in subsequent years even if the return of loss  is filed beyond the time prescribed under section 139(3) of the  Income-tax Act, 1961 ?"   3. During the assessment year 1996-97, the assessee declared long-term  capital loss of Rs. 1,66,680 in the return filed on December 24, 1996  whereas in view of the provisions of section 139(1) the return claiming loss  was required to be filed on or before August 31, 1996. The assessee for the  assessment year 1999-2000 declared long-term capital gains on the sale of  shares at Rs. 2,04....

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....sing Officer was fully justified in not allowing the set off of the loss claimed  by the assessee and consequently dismissed the assessee's appeal vide  order dated May 9, 2002 (annexure A-4). The assessee preferred a second  appeal before the Income-tax Appellate Tribunal Chandigarh Bench "A"  Chandigarh (in short "the Tribunal"). The Tribunal also did not accept the  submissions raised on behalf of the assessee and consequently dismissed  the appeal of the assessee putting its seal of affirmation on the findings  recorded by the authorities below.   5. This is how the assessee-appellant is in appeal before us.   6. We have heard learned counsel for the parties and have perused the record.....

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....21, wherein it was held as under (page 529) :   "An irresistible conclusion on the conjoint reading of the aforesaid provisions would be that a business loss cannot be carried forward unless it has been determined in pursuance of a return filed under section 139 of the Act. In order to be entitled to carry forward a business loss, the assessee must submit a return under section 139(3) of the Act and have an assessment made for the year in which he has incurred the loss. The Assessing Officer has to notify to the assessee by an order in writing the amount of the business loss as computed by him which the assessee is entitled to have carried forward. Where the business loss determined has not been notified to the assessee by the Asses....