9911796707
TMI Blog1983 (11) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee filed the return for the asst. yr. 1976-77 on 3rd November, 1976, and that the assessee had filed an application for extension of time for filing the return in Form No. 6 on 21st August, 1976. According to the ITO Form No. 6 was filed beyond the date of filing the return u/s 139(1). The ITO also noted that the return for the assessment year under appeal was filed beyond the time prescribed u/s 139(1). In that view of the matter, the ITO was of the opinion that the assessee was not entitled to the benefit of set off of the losses for the earlier assessment years against the profit for the current assessment year. 3. The assessee appealed to the CIT (Appeals) and contended that the ITO had determined a net business loss of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow stated that the appellant has move a rectification petition before the ITO in respect of the assessment years 1976-77 and 1977-78. As a result of any order to be passed on such petitions, if there is any loss to be b/f to the year the same will be set off. It may be mentioned that the ITO is not justified in not setting off unabsorbed depreciation determined in the assessment years 1976-77 & 1977-78. He is directed to set off the unabsorbed depreciation of these years against the total income determined for the year under review." 4. The assessee has carried the matter in further appeal before the Tribunal. It was contended by the ld. Counsel for the assessment that in view of the clear provisions of s. 72 the lower authorities were wr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o computes the loss in the previous year, that the loss cannot be set off against the income of the subsequent year is not binding on the assessee. The ld. departmental representative, on the other hand, highlighted the reasons given by the lower authorities for rejecting the assessee's claim for carry-forward and set off of losses for the earlier assessment years against the profit for the current assessment year. 5. Sec. 72(1) of the IT Act, 1961, provides that if the net result of computation under the head profits and gains of business or profession is a loss and such loss cannot be or is not wholly set off against the income under any head of income in accordance with the provisions of s. 72(1), so much of the loss as has not been so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Officer dealing with the assessment in the subsequent year to determine whether the loss of the previous year may be set off against the profits of that year. A decision recorded by the Income-tax Officer who computes the loss in the previous year under section 24(3) that the loss cannot be set off against the income of the subsequent year is not binding on the assessee." Then, again, the Bombay High Court in the case of Western India Oil Distributing Co. Ltd. reiterated the same view. Bearing this principle in mind and considering the facts of the case, we are of the opinion that the assessee was entitled to the benefit of carry-forward and set off of the business losses of the earlier assessment years against the profit for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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