JOGINDER PAUL (HUF) Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This appeal under Section 260A of the Income-tax Act, 1961 (for short "the Act") has been filed by the Assessee against the order dated July 12, 2004, passed by the Income-tax Appellate Tribunal, Chandigarh Bench "B" Chandigarh, (in short "the Tribunal") in I.T.A. No. 544/Chandi/2002, for the assessment year 1999-2000.

(2.) The present appeal was admitted for determination of the following question of law for the opinion of this Court:

(3.) During the assessment year 1996-97, the Assessee declared long-term capital loss of Rs. 1,66,680 in the return filed on December 24, 1996 whereas in view of the provisions of Section 139(1) the return claiming loss was required to be filed on or before August 31, 1996. The Assessee for the assessment year 1999-2000 declared long-term capital gains on the sale of shares at Rs. 2,04,909 against which the Assessee had sought to adjust the long-term capital loss of Rs. 1,66,680 relating to the assessment year 1996-97. According to the Assessee, the loss for the assessment year 1996-97 was carried forward to the assessment years 1997-98 and 1998-99 and in the computation chart of total income filed along with the return for the aforesaid two years, a note was appended to carry forward the long-term capital loss of Rs. 1,66,680 in the subsequent years. The income returned in the assessment year 1998-99 was accepted by the Assessing Officer and, thus, the loss of Rs. 1,66,680 was impliedly allowed to be carried forward to the current year, i.e., the assessment year 1999-2000. The Assessee was disallowed the setting off of the loss claimed by him as according to the Assessing Officer the provisions of Section 80 read with Section 139(3) of the Act had not been complied with by the Assessee, inasmuch as the return for the assessment year 1996-97 was not filed within the time allowed under Section 139(1) of the Act.