1984 (3) TMI 75

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....e as well as at the time of assessment proceedings, the assessee claimed deduction of Rs. 11,834 being the deduction it was entitled to under s. 80J of the Act in respect of the asst. yr. 1975-76 from the total income of the year under consideration. The ITO, however, rejected the assessee's claim in the following manner: "The company has claimed under s. 80J relief for the asst. yr. 1975-76 amounting to Rs. 11,884 without deducting borrowings in view of s. 80J. However, the assessment order shows that the assessee had neither made any claim nor the ITO has either quantified or allowed the carry forward of any of this claim. As such the assessee's claim in this year is not considered." 4. In appeal, the CIT(A) accepted the assessee's ....

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....it is entitled is to be carried forward till it is adjusted against the profits and gains of subsequent years upto a limit of 7 years it permits the adjustment of carried forward deduction against the profits and gains of subsequent years in cases of shortfall or deficiency; there is no requirement in any part of s. 80J that the assessee must make a definite claim and the ITO must determine the amount of deduction before it can be carried forward in a case, where, admittedly the industrial undertaking had suffered a loss which had been accepted while making the assessment, since provision is also made for carry forward for 7 years, the deduction is permissible even in a case where the formality of making a claim has not been complied with b....