COMMISSIONER OF INCOME TAX Vs. TULSI GOVINDA BARUAH

JUDGEMENT

(1.) THE following question has been referred by the Tribunal at the instance of the Revenue under s. 256(1) of the IT Act, 1961 (`the Act'): "Whether, on the facts and in the circumstances of the case, the Tribunal did not on facts as well as in law in upholding the order of the CIT (A) who allowed carry forward of loss even though he did not file his return of income within the time allowed under s. 139(3) ?"

(2.) FOR the asst. yr. 1984-85, the assessee filed return on 6th Feb., 1986 showing a loss of Rs. 3,08,350. The AO completed the assessment and mentioned that the assessee had come to claim the set off of loss of the earlierly year amounting to Rs. 5,09,710. He found that for the earlier two years returns were not filed within the time allowed under s. 139(1) of the Act and there was no extension of time for filing of the returns for those years. He, therefore, concluded that there was no question of setting off of loss of earlier years in this year in view of the provisions of ss. 139(1) and 80 of the Act. The income assessed during the year was of Rs. 2,24,030.

(3.) IT has been submitted by the learned counsel for the parties that this case is covered by the decision of this Court in the case of N.E. Region vs. K.C. Bezbaruah (1992) 1 GLR 155. In the said case this Court held that the loss could be carried forward in the subsequent year and answered in the reference in the affirmative and against the Revenue.