COMMISSIONER OF INCOME TAX Vs. PIGMENTS INDIA LIMITED

JUDGEMENT

(1.) THE Revenue, under s. 256(2) of the IT Act, 1961, desires reference of the following questions :

(2.) THE question relates to the asst. yr. 1986 -87 in regard to which in the first instance a return was filed on 10th Oct., 1986. Obviously the AO acting under s. 143(1) accepted the loss shown in the return amounting to Rs. 34,54,499 to be carried forward. However, it was held that the assessee would not be entitled for the benefit of carry forward of the loss because the return of income was not furnished within the time allowed under s. 139(3) of the Act. This was with regard to the asst. yr. 1986 -87.

(3.) THE matter was taken up before the first appellate authority - the CIT(A). The authority has found that for the asst. yr. 1986 -87 the assessee had been granted extension of time upto 30th Sept., 1986. As the return was filed beyond the time allowed under s. 139(3) of the Act, it was held that the assessee was not entitled to carry forward the loss determined in the assessment. For the asst. yr. 1987 -88 also the first appellate authority confirmed the order of the AO on the ground that in terms of s. 139(3) r/w s. 139(10), the loss could not be carried forward and set off.