1984 (5) TMI 74

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ng on the business of production of cinematographic feature films. For the assessment years 1974-75 and 1975-76, the assessee-company did not file its returns voluntarily but in response to notices issued to it by the ITO under section 148 read with section 147(a). In the returns so filed on 15-2-1979, the assessee-company declared a loss of Rs. 35,110 for the assessment year 1974-75 and Rs. 53,340 for the assessment year 1975-76. The ITO, however, found that the assessee-company who had filed balance sheets and profit and loss accounts for each of the assessment years had declared only royalty receipts against which it had claimed expenses ; these the ITO considered excessive. He observed that besides, the assessee had not shown any receip....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... as to enable the assessee to file the returns. He contended that, in any case, the return filed by the assessee in response to the notices under section 148 read with section 147(a), were returns under section 139(2) and as such entitled the assessee to determination of its business losses and ' carry forward ' thereof in accordance with the law. In support of this proposition, Shri Shah cited the decision of the Madras High Court in the case of CIT v. Standard Motor Products of India Ltd. [1983] 142 ITR 877. He also referred to the decision of the Calcutta High Court in the case of Presidency Medical Centre (P.) Ltd. v. CIT [1977] 108 ITR 838. 5. Shri R.N. Vaze, the departmental representative, on the other hand, submitted that the ret....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ished a return within the time allowed to him under section 139(1) or 139(2) can furnish a return before the assessment is made, but then the returns had to be filed before the expiry of two years from the end of the assessment years in question. The assessee, who had obviously not filed the returns within any of the aforesaid time limits, was not entitled to the determination and carry forward of losses which were admittedly claimed for the first time in returns filed in response to notices under section 148 read with section 147(a). In this respect, the decision of the Madras High Court in the case of standard Motor Products of India Ltd. does not assist the assessee-company's contention ; for, in that case, the questions were whether in ....