SUPREME COURT OF INDIA

Before:-S.P. Bharucha and R.C. Lahoti, JJ.

Civil Appeal No. 7827 of 1995. D/d. 23.3.1999.

Commissioner of Income Tax, Hyderabad - Appellant

Versus

Hmt Bearings Ltd., Hyderabad - Respondent

Income Tax Act, 1961 Sections 139(2), 146(1)(i) and 80

Case Referred :-

HMT Bearing Ltd. v. Commissioner Income Tax, (1988) 173 ITR 597.

ORDER

1. 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 Ltd. v. Commissioner Income Tax, (1988) 173 ITR 597 is whether a return filed and accepted in pursuance of an order made under Section 146, particularly on the ground mentioned in clause (i) of sub-section (1) thereof, can be treated as a return filed under Section 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 under Section 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 under Section 146 or within such time as he may specify. Such return would then be a return filed under Section 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.

2. The appeal is dismissed with no order as to costs.

Appeal dismissed.