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2005 (8) TMI 70 - MADRAS HIGH COURTCarry forward of business loss - "1. Whether, Tribunal is right in law in holding that the assessee is entitled to carry forward of business loss relying on the Supreme Court's decision in the case of CIT v. Kulu Valley Transport Co. P. Ltd. (which was rendered under the old Act) - 2. Whether the Tribunal is justified in law in allowing carry forward of loss when as per the amended provision of section 139(3) by the Taxation Laws (Amendment) Act, 1970, the loss return filed beyond the time prescribed by section 139(3) cannot be considered as having been filed within the time allowed under section 139(4)?" - In CIT v. Kulu Valley Transport Co. P. Ltd., SC held that sub-sections (1) and (4) of section 139 are to be read together, and hence the assessee would be entitled to carry forward a loss, if he has filed the return after the period prescribed by sub-section (1), but within the time allowed under sub-section (4). This view has been followed by the Gauhati High Court in CIT v. Naginimara Veneer and Saw Mills P. Ltd.; the Calcutta High Court in Basant Kumar Bajoria v. CIT and the Orissa High Court in CIT v. Orissa Metal Industries P. Ltd. - In view of the above, the reference is decided in the affirmative, i.e., in favour of the assessee and against the Department
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