TMI Blog1998 (11) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... section 264 of the Income tax Act pointing out that the loss declared in the return was only carry for ward loss of the earlier years which has already been allowed and there is no loss declared in the relevant accounting year and the provisions of section 139(3) and section 139(10) are not applicable. The income for the assessment year 1988-89 was Rs. 4,11,340 and the total figure of loss to be carried forward up to 1987-88 was Rs. 41,50,850. The revision was rejected on the ground that the return was not filed within the time prescribed under section 139(1). An application under section 154 was also moved on April 9, 1991, to the Commissioner stating that the statutory benefit conferred cannot be withdrawn and the provisions of section 13 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , with effect from April 1, 1989. In CIT v. Harprasad and Co. Pvt. Ltd. [1975] 99 ITR 118, it was observed by the apex court that from the charging provisions of the Act, it is discernable that the words "income" or "profits or gains" should be understood as including loss also, so that, in any sense profit and gains represent plus income whereas loss represents minus income. In other words, loss was considered to be negative profit and both negative and positive profits being of a revenue character were considered to enter as component in the taxable income. Earlier the Income-tax Officer had discretion to extend time, but from April 1, 1987, return was required to be filed under section 139(1) by 31st July of the assessment year relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 989-90, by amendment Act of 1987, return was required to be filed within the time allowed under section 139(1) and the discretion for extension of time by the assessing authority would not be availed of. Section 80 is the specific provision for submission of return of loss which is as under : "Section 80. Notwithstanding anything contained in this Chapter, no loss which has not been determined in pursuance of a return filed in accordance with the provisions of sub-section (3) of section 139, shall be carried forward and set off under sub-section (1) of section 72 or subsection (2) of section 73 or sub-section (1) or sub-section (3) of section 74 or sub-section (3) of section 74A." The above provision contemplates determination of loss i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on and investment allowances differently than that of business loss. In these circumstances, I am of the view that the period of limitation prescribed under section 139(1) is not applicable for carry forward of unabsorbed depreciation and investment allowance. In CIT v. Jaipuria China Clay Mines (P.) Ltd. [1966] 59 ITR 555 (SC) it was found that carry forward of depreciation is provided for in section 10(2)(vi) and section 24(2) only deals with losses other than the loss due to depreciation. In Sri Hari Mills Ltd. v. First ITO [1967] 65 ITR 348 (Mad) it was held that regarding carry forward of unabsorbed depreciation compliance with section 22(2A) of the Indian Income-tax Act, 1922, is not necessary. The provisions of section 24(2) cannot b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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