Commissioner of Income Tax vs H.M.T. Bearings Ltd.

S.P. Bharucha, J.—We have heard learned Counsel. We find no merit in the appeal. The precise question to be answered, as formulated in the judgment and order under appeal HMT Bearing Limited Vs. Commissioner of Income Tax and Another, , is whether a return filed and accepted in pursuance of an order made u/s 146, particularly on the ground mentioned in Clause (i) of Sub-section (1) thereof, can be treated as a return filed u/s 139 for the purpose of Section 80 ; if it is, the losses can be carried forward ; if it is not, the losses will not be allowed to be carried forward. The High Court has rightly held that where a best judgment assessment is set aside u/s 146 on the income tax Officer being satisfied that the assessee was prevented by sufficient cause from making a return required under Sub-section (2) of Section 139, he naturally has to receive the return filed along with the application u/s 146 or within such time as he may specify. Such return would then be a return filed u/s 139 for the purpose of Section 80 as it then stood. In our view, this conclusion is correct and it requires no interference by this Court.

The appeal is dismissed with no order as to costs.