S.C : The precise question to be answered, as formulated in the judgment and order under appeal [H.M.T. Bearings Ltd. vs. CIT (1988) 73 CTR (AP) 243 : (1988) 173 ITR 597 (AP)], is whether a return filed and accepted in pursuance of an order made under s. 146

Supreme Court Of India

CIT vs. H.M.T. Bearings Ltd.

Sections 80, 139, 146

S.P. Bharucha & R.C. Lahoti, JJ.

Civil Appeal No. 7827 of 1995

23rd March, 1999

Counsel Appeared

J. Ramamurthi with M.R. Shah & B.K. Prasad, for the Appellant : M.S. Syali, Satyen Sethi, Arun Kathpalia & R.P. Dave, for the Respondent

ORDER

By the court :

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 [H.M.T. Bearings Ltd. vs. CIT (1988) 73 CTR (AP) 243 : (1988) 173 ITR 597 (AP)], is whether a return filed and accepted in pursuance of an order made under s. 146, particularly on the ground mentioned in cl. (i) of sub-s. (1) thereof, can be treated as a return filed under s. 139 for the purpose of s. 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 under s. 146 on the ITO being satisfied that the assessee was prevented by sufficient cause from making a return required under sub-s. (2) of s. 139, he naturally has to receive the return filed along with the application under s. 146 or within such time as he may specify. Such return would then be a return filed under s. 139 for the purpose of s. 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.

[Citation : 263 ITR 7]

Malcare WordPress Security