Law:

Section:

Section 72, read with section 157 of the Income-tax Act, 1961 [Corresponding to section 24(2), read with section 24(3) of the Indian Income-tax Act, 1922] - Losses - Carry forward and set off of business loss - Assessment years 1944-45 to 1946-47 - Assessee company returned loss for relevant assessment years but Income-tax Officer took income of company as 'nil' and exempted it under section 23(3) of 1922 Act - Assessee made profit for first time in 1948-49 and, therefore, claimed to set off loss incurred in relevant assessment years against said profit - Department however, disallowed assessee's claim on ground ITO had failed to notify loss as required by section 24(3) of 1922 Act - Whether right which legislature conferred upon assessee under section 24(2) of 1922 Act to carry forward loss of previous years for period of six years is absolute unqualified right and that right is not made conditional upon any computation made by Income-tax Officer or any notice issued by him - Held, yes - Whether when Income-tax Officer did not give finding and did not compute loss made by assessee, computation of loss by assessee could not be said to have become appealable under section 30 of 1922 Act and no appeal having been preferred, computation could not be said to have become final - Held, yes - Whether no person can put forward his own default in defence to a right asserted by other party - Held, yes - Whether there was nothing to prevent ITO from computing losses which assessee might have incurred and since ITO had failed to do so, assessee was entitled to set off losses incurred in respect of relevant assessment years against profits of assessment year 1948-49 - Held, yes FACTS In the assessment years in question the assessee company incurred a loss and made a return to that effect. The Income-tax Officer, however, took the income of the company as 'nil' and exempted it under section 23(3) of the 1922 Act. The assessee-company made a profit for the first time in the assessment year 1948-49 and, therefore, it claimed to set off the loss suffered by it in the relevant assessment years. The department disallowed the claim of the assessee on the ground that inasmuch as…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492