TMI Blog1991 (2) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal is right in holding that 'the return must be taken to have been filed under section 139(4)' ?" The respondent is an assessee under the Income-tax Act. We are concerned with the assessment year 1976-77 for which the accounting period ended on March 31, 1976. The assessee is a bus operator. In the assessment proceedings, the assessee pleaded for carrying forward a loss of Rs. 18,500. This was declined by the Income-tax Officer. In appeal, this was confirmed by the Appellate Assistant Commissioner. The Appellate Assistant Commissioner distinguished the decision of the Supreme Court in CIT v. Kulu Valley Transport Co. P. Ltd. [1970] 77 ITR 518 by holding that the said case was based on the provisions of the Indian Income-tax Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arises for consideration is whether, in the return filed by the assessee, which could only be a return filed under section 139(4) of the Act, it is open to the assessee to insist that the loss incurred in the previous years must be determined and allowed to be carried forward. We find that, construing the provisions of section 139(4) of the Income-tax Act, 1961, read along with section 80 of the Act, as it stood at the relevant time, the Allahabad, Andhra Pradesh, Bombay, Calcutta, Delhi and Madhya Pradesh High Courts have taken the view that the return filed or deemed to have been filed under section 139(4) of the Act, before the assessment is made, should be considered and the assessee is entitled to carry forward the loss determined by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arried forward and set off is to be permitted. But, we are concerned with the assessment year 1976-77, which period is long before the above legislative amendment. As the law stood in the relevant assessment year 1976-77, in view of the decisions of various High Courts referred to above, the assessee was entitled to carry forward the loss and the decision of the Supreme Court in Kulu Valley Transport Co. P. Ltd.'s case [1970] 77 ITR 518 will apply. The decision of the Tribunal, relying upon the decision of the Bombay High Court in Telster Advertising Pvt. Ltd.'s case [1979] 116 ITR 610 is justified in law. We, therefore, answer both the questions referred to this court in the affirmative, against the Revenue and in favour of the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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