COMMISSIONER OF INCOME TAX Vs. P R DEVARAJ

JUDGEMENT

(1.) AT the instance of the Department, the Tribunal referred the following question for the opinion of this court under Section 256(1) of the Income-tax Act, 1961 :

(2.) THE assessee is a partner in a firm called Orvee Construction Company. THE return for the year under reference should have been filed by July 31, 1975, but it was filed on October 9, 1975, disclosing a loss of Rs. 61,730. That included the assessee's share of loss from Orvee Construction of Rs. 82,825. After setting off the income from business and after making certain disallowances, the net loss was determined by the Income-tax Officer at Rs. 60,019 by his order dated January 16, 1979. Instead of carrying forward this loss to be set off against the income of future years, the Income-tax Officer declined to carry forward that loss on the ground that though the return of income was due on July 51, 1975, as per the provisions of Section 139(1) it was filed only on October 9, 1975, and the assessee had not produced any evidence to show that extension of time for filing the return belatedly was asked for and granted by the Income-tax Officer and that, therefore, the loss cannot be carried forward.