T P S BUILDERS (P) LTD Vs. ASSISTANT COMMISSIONER OF INCOME TAX
LAWS(CAL)-1996-2-48
HIGH COURT OF CALCUTTA
Decided on February 28,1996

T P S BUILDERS (P) LTD Appellant
VERSUS
ASSISTANT COMMISSIONER OF INCOME TAX Respondents




JUDGEMENT

- (1.)This is an appeal instituted by the assessee against the order of the CIT(A) for the asst. yr. 1987-88 on the following grounds :
(1) Because that the learned CIT(A) erred in law as well as in facts in holding that the business loss of Rs. 88,634 could not be allowed to be carried forward.

(2) Because that in the facts and circumstances of the case the learned CIT(A) ought to have held that the business loss of Rs. 88,634 should be allowed.

(2.)Briefly stated, the facts of this case are that the assessee is a partner in a registered firm named, Aicam India. The assessee-company filed the original return on 3rd Feb., 1988, showing total income at nil and the revised return on 10th Feb., 1988, showing loss of Rs. 91,440. The Assessing Officer (AO) finalised the assessment and determined the loss at Rs. 91,940 after adjustment of other sources income of Rs. 11,400 being dividend. The AO finally held that since the return of loss is belated the loss will not be carried forward as per law.
(3.)Before the CIT(A) the assessee submitted that as the firm has filed its return within statutory time the AO ought to have allowed loss of Rs. 91,940 to be carried forward. The CIT(A) considered the submission of the assessee and held that since the assessee has not filed the return of loss under s. 139(3) by 31st July, 1987, the AO is justified in rejecting the assessees claim of carry forward of loss. However, the CIT(A) held that the assessee is entitled to carry forward the unabsorbed depreciation of Rs. 3,306 under s. 32(2) of the Act but assessed business loss of Rs. 88,634 should not be allowed to be carried forward.
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