M.H.S.Ansari, J. - (1.) Pursuant to the direction of the court under section 256(2) of the Income-tax Act, 1961, the Income-tax Appellate Tribunal (for short "the ITAT"), has drawn up a statement of case and referred the following questions of law : "(i) Whether, on the facts and in the circumstances of the case and on correct interpretation of section 246(1)(c) of the Income-tax Act, 1961, the Tribunal was right in law in holding that as the statute does not confer an express right of appeal against the order of the specific refusal to carry forward the loss determined on assessment, this issue is debatable ? (ii) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the Commissioner of Income-tax (Appeals)-X had no jurisdiction to rectify the order of the Commissioner of Income-tax (Appeals)-I, under section 154 ? (iii) Whether, on the facts or in the circumstances of the case, the Tribunal was right in law in allowing the departmental appeal and cancelling the order under section 154 of the Commissioner of Income-tax (Appeals)-X, thus depriving the assessee-company of its right to carry forward the loss ?"
(2.) The brief facts leading to the reference are as under : 2
(3.) For the assessment year 1982-83, the assessee filed a return on July 29, 3 1983, showing "loss". The assessment was made by an order dated March 20, 1985. In the said order, the loss was computed and the Assessing Officer held that as the return was not filed in time the loss is not allowed to be carried forward to the next year. Aggrieved by the order of assessment, the assessee preferred an appeal before the learned Commissioner of Income-tax (Appeals) (for short "the learned CIT(A)"). In his order dated March 7,1988, the learned Commissioner of Income-tax (Appeals) granted certain reliefs to the assessee but dismissed the assessee's appeal with regard to the carry forward of loss by holding that such ground of appeal was not competent.;