Shah, J. - (1.) The Kulu Vallye Transport Co. (page No. ) Ltd.- hereinafter called the Company' - did not file returns of income in respect of the assessment years 1953-54 and 1954-55 within the period specified in the general notice under Section 22 (1) of the Income Tax Act, 1922. In January 1956, the Company filed voluntary returns disclosing loss of income in the course of its business amounting to Rs. 1,151,520 and Rs. 48,977, respectively, for the two years in question. The Income-tax Officer refused to determine the loss observing:"This is a loss case and the return has been filed after the statutory time. The Company is, therefore, not entitled to the benefit of carry-forward of loss in the subsequent assessments. The case is, therefore, filed."
(2.) Against the order of the Income-tax Officer, appeals were preferred to the Appellate Assistant Commissioner. That officer rejected the Company's request for extension for filing the returns, and dismissed the appeals, observing: "The return made under Sec. 22 (2A) can only be taken to be a return under sub-section (1) of Section 22 for the purpose of this Act, if it is made within the statutory time prescribed in sub-section (2A) of the Section 22."
(3.) The Income-tax Appellate Tribunal in second appeal held that the expression "all the provisions of this Act shall apply as if it were a return under sub-section (1)' in sub-section (2A) only applies to a valid return, i.e., return which is filed within the time limit prescribed under sub-section (1). The Tribunal rejected the contention that a voluntary return disclosing loss of income submitted after the expiry of the period for filing a return under sub-section (1) may be deemed to be a return under sub-section (3), and the loss disclosed therein must be determined under sub-section (2) of Section 24 to qualify the assessee to carry it in the following year.;