Case Law Details
CIT Vs. Govind Nagar Sugar Ltd. (ITA No. 164 of 2008) (Del)
Facts: – Taxpayer filed its return of income for the assessment year 2001-02 on 31 March 2003 declaring a loss. The due date of filing the return of loss in terms of provisions of section 139(3) of the Income Tax Act,1 961 (the Act) was 31 October 2001. In the assessment order, the Assessing Officer (the AO) did not allow the carry forward of unabsorbed loss including the unabsorbed depreciation. The Commissioner (Appeals) confirmed the AO’s order and held that the taxpayer was not allowed to carry forward the losses by virtue of section 80 of the Act. On appeal, the Income Tax Appellate Tribunal (the Tribunal) allowed the carry forward of unabsorbed depreciation for the assessment years 2000- 01 and 2001- 02. Aggrieved by the order of the Tribunal, the tax authorities filed an appeal before the High Court.
Issues before the High Court :- Whether it is necessary to file the return of income within the time limit specified under the Act for the purpose of carrying forward the unabsorbed depreciation? Whether the provisions of section 80 would apply to carry forward of unabsorbed depreciation which is governed by provisions of section 32(2) of the Act?
Observations and Ruling of the High Court
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