- (1.) THE matter here concerns the carrying forward of deductions under Section 80j of the Income-tax Act, 1961 (hereinafter referred to as "the Act" ).
(2.) THE assessee, as a sole proprietor of Kismat Industries, Faridabad, carries on the business of manufacture of tractors and trolleys. Production commenced on January 7, 1972. The assessee filed a return for the assessment year 1972-73 declaring a loss of Rs. 41,651. No claim was made for any deduction under Section 80j of the Act for that year. The Income-tax Officer did not, therefore, determine the deduction admissible under this provision of law for the purposes of carrying it forward and setting it off against profits and gains in any subsequent year.
(3.) IN the next assessment year, namely, 1973-74, the assessee, in the first instance, filed a return declaring an income of Rs. 11,769, but later filed a revised return showing a loss of Rs. 42,069. Deduction under Section 80j of the Act was claimed in the revised return for both the assessment years, 1972-73 and 1973-74. The Income-tax Officer determined and allowed deduction under Section 80j for the year 1973-74 and carried it forward for being set off against profits and gains in the subsequent years, but disallowed the claim for the assessment year 1972-73, on the ground that it had not been claimed in that year, that is, 1972-73. No appeal was filed against this order.;