KANAKA FILMS PRIVATE LIMITED Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THESE two writ petitions were filed to issue a writ of mandamus or any other appropriate order in the nature of a direction directing the respondent to carry forward the unabsorbed business loss and set it off against the business income of the petitioner of the assessment years 1970-71 and 1971-72.

(2.) THE petitioner is an assessee. He filed returns of income declaring an adjusted carried forward loss of Rs. 16,441 and an income of Rs. 4,385 after adjusting the balance loss of earlier years. THE Income-tax Officer, in his orders dated November 30, 1970, and December 29, 1971, computed the income at Rs. 2,950 and Rs. 24,786 respectively.

(3.) AFTER the passing of the order of the Appellate Tribunal dated July 31, 1978, the respondent herein, on September 30, 1978, passed an order purporting to give effect to the order of the Appellate Tribunal for the assessment years 1962-63 to 1966-67. In the said order for the assessment year 1966-67, the respondent computed the income at nil and determined the balance of loss for the assessment year 1963-64 to be carried forward at Rs. 18,041. The Income-tax Officer, did not carry forward this loss and adjust it in the subsequent years' income, in accordance with section 72 of the Income-tax Act, 1961, and by his letter dated November 24.1978, directed the petitioner to pay the alleged arrears of tax for the assessment years 1970-71 and 1971-72.