TaxTMI 
TaxTMI 
2018 (8) TMI 200
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.... of the Income Tax Appellate Tribunal or the Commissioner or the Assessing Officer that are included in the papers. On September 2, 2004, search and seizure operations were carried out at the offices of the assessee. It is not in dispute that substantial documents were seized under Section 132 of the Income Tax Act, 1961. As a consequence of the search and seizure operations and in view of Section 153A of the Act, no return for assessment year 2004-05 was filed within the statutorily mandated date of October 31, 2004. According to the appellant, the notice under Section 153A(1)(a) was received by the assessee on March 27, 2006 and the return for the assessment year 2004-05 was filed on or about April 26, 2006. It is also the appellant's c....
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....d the assessee to carry forward the losses incurred in assessment year 2004-05. Indeed, the relevant assessing officer sought to suo motu rectify his order of December 21, 2006 by expressly incorporating the permission therein to carry forward the loss. The Commissioner, in exercise of his authority under Section 263 of the Act, found the rectification which was carried out by the assessing officer to an order of assessment passed earlier was not proper. In the same breath, the Commissioner noticed the principle that whether the carried forward loss from a previous year could be adjusted against the income of a subsequent year would be a matter of consideration in course of the relevant subsequent year and not at any other stage. However, ....
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....that when loss is sought to be carried forward from a previous year, the return of the relevant previous year should have been filed within the date stipulated in Section 139(1) of the Act. It cannot be disputed that the date stipulated in Section 139(1) of the Act is October 31 falling within the relevant year. The Appellate Tribunal endorsed the view of the Commissioner in respect of both the orders passed under Section 163 of the Act. Hence the two appeals. The principal questions that arise in these two matters have been framed by the appellant : (1) Whether a loss return filed within the time specified in the notice under Section 153A(1)(a) of the Income Tax Act, 1961 is required to be treated as a return filed in accordance with t....
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....ant part of Section 153A(1) of the Act needs to be noticed: "153A. Assessment in case of search or requisition.- (1) Notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, in the case of a person where a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A after the 31st day of May, 2003, the Assessing Officer shall - (a) issue notice to such person requiring him to furnish within such period, as may be specified in the notice, the return of income in respect of each assessment year falling within six assessment years and for the relevant assessment year or years referred to in clause (b), in the pres....
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....t year or years ... pending on the date of initiation of the search under Section 132. ... shall abate". It goes without saying that since the search operations in this case were initiated on September 2, 2004, it was no longer necessary for this assessee to file his regular return by October 31, 2004 notwithstanding the mandate of Section 139(1) of the Act. The obligation to file the return remained suspended, in view of the clear opening words of Section 153A(1) of the Act, till such time that a notice was issued to him under clause (a) of such sub-section. If such is the meaning of Section 153A(1) of the Act, the operation of Section 139(3) of the Act qua the time available for filing a return in order to avail of the benefit of carryin....
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....bunal to ascertain the details as to the date of the notice and the time afforded to file the return and pass an order in the light of the views expressed herein on the questions of law and it is ordered accordingly. The first question of law indicated above is answered thus : For the purpose of carrying forward the loss in terms of Section 72 read with Section 80 of the Act, in a case where search operations have been conducted under Section 132 of the Act, the time to file the return within the meaning of Section 139(3) of the Act has to be regarded as the reasonable time afforded by the consequent notice under Section 153A (1)(a) of the Act. The second question is answered thus : When search operations are conducted under Section 13....