COMMISSIONER OF INCOME TAX Vs. METAL INDUSTRIES LTD

JUDGEMENT

(1.) THESE reference cases are coming up before us at the instance of the Revenue. The questions referred to us for decision are as follows:

(2.) THE assessment years involved in these cases are 1979-80 and 1980-81. A notice has been issued by the AO under S. 148 of the IT Act on 1st Oct., 1981, and the assessee filed returns of income for the asst. yrs. 1979-80 and 1980-81 on 7th Jan., 1986. The assessee returned a loss of Rs. 1,53,683 for the asst. yr. 1979-80 and Rs. 7,01,371 for the asst. yr. 1980-81. However, the AO accepted the loss for the year 1979-80 and determined the loss at Rs. 1,44,215. The AO also found that the assessee did not file return of income as provided under S. 139 of the Act and the loss determined could not be carried forward. Appeals were filed before the CIT(A) for both the years. The disallowances were confirmed by the CIT(A), but he directed the AO to allow carry forward of loss for both the assessment years in a sum determined by him, against which the Revenue filed appeals. The Tribunal, however, following the decision of this Court in CIT vs. R. Chandran (supra) sustained the order of the CIT(A). Though, a Misc. Petn. was filed before the Tribunal for rectification of the mistake that was also dismissed by the Tribunal. These reference cases arise in the aforesaid background.

(3.) IN view of the discussion hereinabove, we are of the view that the Tribunal has committed an error in observing that the question involved in this case is squarely governed against the Revenue in view of the decision of this Court in Chandran's case, (supra).