TaxTMI 
TaxTMI 
1997 (10) TMI 54
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....hat for the asst. yr. 1987-88 the petitioner filed a loss return on 22nd Dec., 1987, claiming an aggregate loss of Rs. 1,39,631 comprising of Rs. 1,11,248, being loss carried forward from the previous asst. yr. 1986-87, unabsorbed depreciation for the relevant year Rs. 23,118 and share of loss from other partnerships Rs. 5,266. It is further stated that the petitioner also claimed that the aggregate loss of Rs. 1,39,631 be carried forward to the following assessment year to be set off against the income, if any, of such year, evidenced by Exts. P-2 and P-2(a). It is stated that though the petitioner was entitled to carry forward the unabsorbed depreciation and investment allowance, the second respondent did not pass any assessment order on the returns filed for the years 1986-87 and 1987-88. It is also stated that subsequently for the asst. yr. 1988-89 the petitioner filed his return before the second respondent on 29th July, 1988, returning an aggregate loss of Rs. 2,68,703 comprising of business loss for the year 1988-89 Rs. 1,29,072 and loss carried forward from the asst. yr. 1987-88 Rs. 1,39,631. It is stated that the petitioner also claimed that such aggregate loss should be c....
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....8 and that the aggregate loss shown in the said return was Rs. 1,39,631. The second respondent has dealt with the merits of the matter relating to the claim in respect of the asst. yr. 1986-87 made in the return in para 7 of the counter-affidavit and submitted that the said claim does not appear to be correct. In para 8 of the counter-affidavit it is stated that the petitioner's contention that the ITO did not pass any assessment order on the returns filed for the asst. yr. 1986-87 and 1987-88, is not correct and that the ITO had completed the assessment for the year 1986-87 under s. 143 (1) on 29th Jan., 1988, as "closed as ND" and entered in the D&C register as II(11)(a)/235/87-88. It is stated that there is no specific noting as to whether the loss has been allowed to be carried forward or not. It is further stated that the assessment for the year 1987-88 is also seen completed on 29th Jan., 1988, and entered in the D&C register as III(ii)(a)/437/87-88 and that it has been noted that "loss not allowed to be carried forward for default under s. 139(3)". It is stated that this was intimated to the assessee by issuing an intimation letter (Inland letter) as provided in s. 143(1) as....
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....he assessing authority was not inclined to accept the said returns, the petitioner should have been afforded an opportunity of being heard and that in the instant case, no such opportunity has been granted. He also submitted that the petitioner has not been informed of any such assessment order passed for the years 1986-87 and 1987-88. He submitted that the petitioner is entitled to be heard before rejecting the loss returns. He further submitted that when the petitioner received the assessment order for the year 1988-89 evidenced by Ext. P-4 the petitioner immediately filed petition pointing out that the loss returns filed for the years 1986-87 and 1987-88 have not been taken into account while issuing Ext. P-4 order that, since the petitioner has not received any assessment orders for the said years, he was of the belief that the loss returns filed for the said two years have been accepted and carried forward and that the second respondent simply rejected the petition stating that the loss for the years 1986-87 and 1987-88 were not allowed to carry forward as the returns were filed belatedly. The learned counsel further submitted that at any rate, the first respondent CIT was not....
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....tant case, admittedly the petitioner has filed loss returns for the years 1986-87 and 1987-88 under s. 139 of the Act. Under s. 143(1), there is an obligation on the part of the assessing authority to make an assessment of the total income or loss of the assessee after making such adjustment to the income or loss declared in the return. Under sub-s. (2), where a return has been made under s. 139 and an assessment having been made under sub-s. (1), if the assessee makes within one month from the date of service of the notice of demand issued in consequence of such assessment, an application to the ITO objecting to the assessment, or whether or not an assessment has been made under sub-s. (1), the ITO considers it necessary or expedient to verify the correctness and completeness of the return by requiring the presence of the assessee or the production of evidence in this behalf, the ITO shall serve on the assessee a notice requiring him to attend at the ITO's office or to produce, or cause to be produced any evidence on which the assessee may rely. In the instant case, the petitioner has not been afforded an opportunity as contemplated under sub-s. (2) of s. 143 of the Act. It is pra....