TaxTMI 
TaxTMI 
TaxTMI 
2015 (6) TMI 7
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.... The following questions were formulated at the time of admission of the appeals. ITA No. 162 OF 2003 "i) Whether on the facts and in the circumstances of the case and on a correct interpretation of Sections 80 and 139 of the Income Tax Act, 1961, the Income Tax Appellate Tribunal 'C' Bench, Kolkata misdirected itself in law in confirming that the Assessee Company was not entitled to carry forward and set off the business loss of Rs. 103,17,30,191/- determined and assessed by the learned Assessing Officer in its case vide his order dated 24th October, 1997 passed in respect of the assessment year 1985-86 ? ii) Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the provisions conta....
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....restrictions placed under section 80 of the 1961 Act for carry forward and set off of losses and that the decision of the Hon'ble Supreme Court was therefore distinguishable and not applicable to the instant case in the case of CIT vs. Kullu Valley Transport Co. Pvt. Ltd. (1970) 77 ITR (SC) ?" We have heard the learned counsel appearing for the parties. We are inclined to uphold the order under challenge. Therefore, elaborate discussion is not required. The learned Tribunal has in the impugned judgment and order ably discussed all the points involved in the appeals. The brief facts necessary for disposal of the appeals are as follows: The return for the assessment year 1985-86 was filed by the assessee on 14th October, 1985 declaring an i....
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.... must submit his loss return within the time specified by section 22(1). That provision must be read with section 22(3) for the purpose of determining the time within which a return has to be submitted. It can well be said that section 22(3) is merely a proviso to section 22(1). Thus, a return submitted at any time before assessment is made is a valid return. In considering whether a return made is within time sub-section (1) of section 22 must be read along with sub-section (3) of that section. A return whether it is a return of income, profits or gains or of loss must be considered as having been made within the time prescribed if it is made within the time specified in section 22(3). In other words, if section 22(3) is complied with sect....
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....ection (1) of section 74 or sub-section (3) of section 74A." With effect from 1st April, 1985, section 80 stood amended as follows : "Notwithstanding anything contained in this Chapter, no loss which has not been determined in pursuance of a return filed within the time allowed under sub-section (1) of section 139 or within such further time as may be allowed by the Incometax Officer, shall be carried forward and set off under subsection (1) of section 72 or sub-section (2) of section 73 or sub-section (1) of section 74 or sub-section (3) of section 74A." In support of his submission, he drew our attention to a judgment of the Karnataka High Court in the case of CIT & Anothervs-Srinivasa Builders reported in (2014) 369 ITR 69 (Karnataka)....
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.... Officer, shall be carried forward and set off under subsection (1) of section 72 or sub-section (2) of section 73 or sub-section (1) of section 74 or sub-section (3) of section 74A." Even if it is contended that sub-section 3 of Section 139 is the successor of sub-section (2A) of Section 22 of the 1922 Act, there can be no denial to the fact that section 80 of the 1961 Act was not there. Section 80 begins with a non-obstante clause. Section 80 finds place in Chapter VI. The assessee obviously is seeking to get benefit of the provisions contained in Chapter-VI. The provisions of Chapter VI are regulated by section 80 which emphatically lays down that the benefit of carry forward of losses cannot be allowed unless the return has been filed ....