Commissioner of Income Tax vs Kamala Tea and Industries Ltd.

D.N. Baruah, J.—At the instance of the Revenue, the following question has been referred by the Income Tax Appellate Tribunal u/s 256(1) of the Income Tax Act, 1961 (for short, the Act), for opinion of this court ;

" Whether under the facts and circumstances of the case, the Tribunal did not err in facts as well as in law in allowing the carry forward of loss for the assessment year 1984-85 even though the assessee did not file its return of income within the time as prescribed u/s 139(1) of the Income Tax Act ?"

The assessee, a company carrying on business in tea, submitted its return for the assessment year 1984-85 showing loss of Rs. 4,71,467. The Assessing Officer completed the assessment at a loss of Rs. 1,28,670. The Assessing Officer did not allow carry forward of the business loss as the return of loss was not filed within the time as prescribed u/s 139(1) of the Act. The assessee preferred an appeal before the Commissioner of Income Tax (Appeals). The Commissioner of Income Tax (Appeals) allowed the carry forward of determined loss. Against the order of the Commissioner of Income Tax (Appeals), the Revenue preferred an appeal before the Tribunal. The Tribunal confirmed the order of the Commissioner of Income Tax (Appeals). Hence, the present reference.

We have heard Mr. G. K. Joshi, learned standing counsel appearing on behalf of the Revenue. None appears on behalf of the assessee.

Mr. Joshi submits that this case is squarely covered by a decision of the apex court in Commissioner of Income Tax, Punjab Vs. Kulu Valley Transport Co. P. Ltd., and also a decision of this court in CIT v. K. C. Bezbarua, [1992] 195 ITR 321.

We have gone through the decisions, In our opinion, the question referred in this case is squarely covered by the aforesaid decisions. Following the aforesaid decisions, we answer the reference in the affirmative, in favour of the assessee and against the Revenue. A copy of this judgment under the signature of the Registrar and the seal of the High Court shall be transmitted to the Income Tax Appellate Tribunal.

In the facts and circumstances of the case, there will be no direction as to costs.

S.B. Roy, J.

I agree.