COMMISSIONER OF INCOME TAX Vs. MRINAL SEN

JUDGEMENT

(1.) The following question of law has been referred to this court by the Tribunal under Section 256(1) of the Income-tax Act, 1961 :

(2.) The assessment year involved is 1976-77 for which the relevant accounting year ended on March 31, 1975. The question is about carry forward of loss. The Income-tax Officer disallowed the claim for carry forward on the ground that the assessee had not filed the return of income within the time allowed by Section 139(3) of the Income-tax, Act 1961. The Appellate Assistant Commissioner, on appeal, following the decision of the Supreme Court in the case of CIT v. Kulu Valley Transport Co. (P.) Ltd. [1970] 77 ITR 518 and also the judgment of this court in the case of Presidency Medical Centre (P.) Ltd. v. CIT [1977] 108 ITR 838, held that this loss had to be allowed and the assessee was entitled to carry forward the loss of Rs. 1,57,441.

(3.) On further appeal, it was contended before the Tribunal that, in view of the amendment of Section 139 which came into force on April 1, 1976, the decision of the Calcutta High Court in the above-named case was no longer good law. The Tribunal further held that the amendment of Section 139(1) did not alter the principle laid down by the Calcutta High Court in the aforesaid case of Presidency Medical Centre (P.) Ltd. v. CIT [1977] 108 ITR 838. In that view of the matter, the Tribunal upheld the order of the Appellate Assistant Commissioner.