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TMI Blog2001 (4) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... pute relates to the assessment year 1976-77. The factual position needs to be noted in brief, as factual controversy has very little role to play in the adjudication of the case. The assessee, a private limited company, filed its return of income on December 27, 1976, showing a loss of Rs. 80,921. A revised return was filed on September 5, 1977, showing a loss of Rs. 1,38,258. Though the total loss was determined at Rs. 1,08,364, the benefit of carry forward and set off against the assessments to follow was not granted on the ground that the return was not filed under section 139(3) of the Act. The assessee preferred appeal before the Appellate Assistant Commissioner of Income-tax (in short "the AAC"), who held that the Income-tax Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 18 (SC) has been rightly applied. It is to be noted that the decision in Kulu Valley Transport Co. P. Ltd.'s case [1970] 77 ITR 518 (SC) was rendered in the background of section 22 of the Indian Income-tax Act, 1922 (hereinafter referred to as the "1922 Act"). Sub-section (2A) of section 22 read as follows: "22. Return of income--... (2A) If any person, who has not been served with a notice under subsection (2) has sustained a loss of profits or gains in any year under the head 'Profits and gains of business, profession or vocation', and such loss or any part thereof would ordinarily have been carried forward under sub-section (2) of section 24, he shall, if he is to be entitled to the benefit of the carry forward of loss in any subsequ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from April 1, 1985. The expression "under section 139" was substituted by the expression "within the time allowed under sub-section (1) of section 139 or within such further time as may be allowed by the Income-tax Officer". "80. Submission of return for losses.--Notwithstanding anything contained in this Chapter, no loss which has not been determined in pursuance of a return filed within the time allowed under sub-section (1) of section 139 or within such further time as may be allowed by the Income-tax Officer, shall be carried forward and set off under sub-section (1) of section 72 or sub-section (2) of section 73 or sub-section (1) of section 74 or sub-section (3) of section 74A." With effect from April 1, 1989, by the amendment, in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, allow" was added after the expression "within the time allowed under sub-section (1)". Subsequently by the Taxation Laws (Amendment and Miscellaneous Provisions) Act, 1986, changes were made in the provision and after the change sub-section (3) of section 139 read as follows: "139. (3) If any person who has not been served with a notice under subsection (2), has sustained a loss in any previous year under the head 'Profits and gains of business or profession' or under the head 'Capital gains' and claims that the loss or any part thereof should be carried forward under sub-section (1) of section 72, or sub-section (2) of section 73, or sub-section (1) or sub-section (3) of section 74, or sub-section (3) of section 74A, he may furnish, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the loss or any part thereof should be carried forward under sub-section (1) of section 72, or sub-section (2) of section 73, or sub-section (1) or sub-section (3) of section 74, or sub-section (3) of section 74A, he may furnish, within the time allowed under sub-section (1), a return of loss in the prescribed form and verified in the prescribed manner and containing such other particulars as may be prescribed, and all the provisions of this Act shall apply as if it were a return under sub-section (1)." On a comparison of section 22 of the 1922 Act and those contained in section 139(3), it is to be noted that sub-section (3) of section 139 empowered the Income-tax Officer to extend the time for furnishing a loss return between April 1, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of section 22(2A) of the 1922 Act to the extent that return of loss under the old section could have been made either within the time prescribed by sub-section (1) of section 22 or within the time as the Income-tax Officer in any case might have allowed, the benefit of extension of time by the Income-tax Officer was not originally granted under section 139(3). But such benefit was given by amending the provision with effect from April 1, 1971. Again by way of an amendment by the Taxation Laws (Amendment and Miscellaneous Provisions) Act, 1986, power to extend time for furnishing a return disclosing loss has been taken away with effect from April 1, 1987. With effect from that date a loss return is required to be furnished within the tim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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