Commissioner of Income Tax vs Pigments India Ltd.

V.V. Kamat, J.—In fact, we had dealt with a similar situation in O. P. No. 18061 of 1995 ( Commissioner of Income Tax Vs. Pigments India Ltd., ).

The questions of law sought for our decision are as follows :

"1. Whether, on the facts and in the circumstances of the case and also in the light of the relevant provisions, the assessee is entitled to carry forward any loss ?

Whether, on the facts and in the circumstances of the case and in view of the amendment to Section 139(3) with effect from April 1, 1987, the Tribunal is right in law-

(i) in taking into consideration the loss return filed on September 30, 1987 ?

(ii) in setting aside the order of the assessing authority and in giving a direction to the assessing authority to pass fresh order in accordance with law ?

Whether, on the facts and in the circumstances of the case, does the decision of the Supreme Court in Commissioner of Income Tax, Uttar Pradesh Vs. Manmohan Das (Deceased), , relied on by the Tribunal have application to the facts of the case ?"

From the factual matrix as available from the three orders, it could be seen that the decision of the Tribunal would require no disturbance.

The assessment year is 1987-88. The return of income was filed on October 10, 1986 (sic). This was within the extended time. The Assessing Officer completed the assessment u/s 143(1) of the Income Tax Act, 1961, accepting the returned loss. The assessee had claimed a loss of Rs. 34,54,499 to be carried forward. This was not permitted by the Assessing Officer, holding that the assessee was not entitled to carry forward of the loss as the return of income was not filed within the time allowed by the provisions of Section 139(3) of the Act. However, the facts are clear that the return was filed after obtaining extension of time and within the time extended.

This is the very aspect that we have considered in our judgment dated July 2, 1996, in O.P. No. 18061 of 1995 ( Commissioner of Income Tax Vs. Pigments India Ltd., ) wherein also the return was actually filed on the same day, October 10, 1986. The assessee also is the same. But the assessment year is 1986-87 therein whereas in this petition it is 1987-88.

The factual situation is also identical that the Income Tax Officer initially granted extension of time till September 30, 1986, and the assessee had applied again for extension up to October 15, 1986, and it was within the said period in regard to which extension was applied for, the return happened to be filed on October 10, 1986 (sic).

In this view of the situation, the view of the Tribunal needs no interference. The original petition stands dismissed accordingly.