Law:

Section:

Section 80, read with section 139, of the Income-tax Act, 1961 - Losses - Loss return (Carry forward and set off) - Assessment years 1985-86 and 1986-87 - Assessee filed returns declaring certain income after expiry of time extended by Assessing Officer for filing return - Assessments were, however, made at net loss - Whether assessee-company was entitled to carry forward and set off business loss determined and assessed by Assessing Officer - Held, no [In favour of revenue] FACTS â–  For relevant assessment years, the assessee filed returns declaring certain income. Both the returns were filed after expiry of the time extended by the Assessing Officer for filing of return. â–  The assessment, after the matter had travelled upto the Tribunal and after the matter had reached finality, had been made at a net loss. â–  Question arose whether the assessee was entitled to the benefit of carrying forward the losses. â–  The Tribunal held that the assessee-company was not entitled to carry forward and set off the business loss determined and assessed by the Assessing Officer. â–  On appeal before the High Court: HELD â–  The provisions of Chapter VI are regulated by section 80 which emphatically lays down that the benefit of carry forward of losses cannot be allowed unless the return has been filed within the time provided in sub-section (1) of section 139 or within such further time as may be allowed by the ITO. Admittedly, the assessee did not file return within the time prescribed by sub-section (1) or within the time extended by the ITO. There is, as such, nothing that the Court can do to assist the assessee. â–  Even if, initially it was not a return of loss and was a return of income, there is no wayout to help the assessee from the net of section 80. â–  The submission of assessee that section 80 does not apply to the returns declaring income is altogether devoid of any merit. The question whether the assessees is asking for benefit under sections 72, 73 and 74? If the answer is yes, section 80 is bound to apply, whether it is a return of loss or profit. â–  For the aforesaid reasons, the Tribunal was justified in…

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