TMI Blog2010 (8) TMI 596X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 544/Chandi/2002, for the assessment year 1999-2000. 2. The present appeal was admitted for determination of the following question of law for the opinion of this court : "Whether the assessee will be entitled to the benefit for carry for- ward of loss to be set off in subsequent years even if the return of loss is filed beyond the time prescribed under section 139(3) of the Income-tax Act, 1961 ?" 3. During the assessment year 1996-97, the assessee declared long-term capital loss of Rs. 1,66,680 in the return filed on December 24, 1996 whereas in view of the provisions of section 139(1) the return claiming loss was required to be filed on or before August 31, 1996. The assessee for the assessment year 1999-2000 declare ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fully justified in not allowing the set off of the loss claimed by the assessee and consequently dismissed the assessee's appeal vide order dated May 9, 2002 (annexure A-4). The assessee preferred a second appeal before the Income-tax Appellate Tribunal Chandigarh Bench "A" Chandigarh (in short "the Tribunal"). The Tribunal also did not accept the submissions raised on behalf of the assessee and consequently dismissed the appeal of the assessee putting its seal of affirmation on the findings recorded by the authorities below. 5. This is how the assessee-appellant is in appeal before us. 6. We have heard learned counsel for the parties and have perused the record. 7. Learned counsel for the appellant submitted that the loss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the conjoint reading of the aforesaid provisions would be that a business loss cannot be carried forward unless it has been determined in pursuance of a return filed under section 139 of the Act. In order to be entitled to carry forward a business loss, the assessee must submit a return under section 139(3) of the Act and have an assessment made for the year in which he has incurred the loss. The Assessing Officer has to notify to the assessee by an order in writing the amount of the business loss as computed by him which the assessee is entitled to have carried forward. Where the business loss determined has not been notified to the assessee by the Assessing Officer, the assessee can have it determined in a subsequent year in which the bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee by the Assessing Officer. Rather on a query put by the court, viz., was there any specific order passed by the Assessing Officer, the counsel for the assessee candidly admitted that no such order was passed by the Assessing Officer in that behalf. The submission of the counsel that when the assessment order was passed by the Assessing Officer it would impliedly constitute permission to carry forward of long-term capital loss, is against the mandate of section 80 of the Act which prescribes that the losses under sections 72(1), 73(2), 74(1), 74(3) and 74A(3), if not determined in pursuance of a return filed under section 139(3), shall not be carried forward and set off. The judgments relied upon by the counsel for the assessee, thu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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