Commissioner Of Income-Tax, Punjab v. Kulu Valley Transport Co. (P) Ltd

COMMISSIONER OF INCOME-TAX, PUNJAB KULU VALLEY TRANSPORT CO. (P) LTD. April 30, 1970 [J. C. Sf(AH, K. S. HEGDE AND A. N. GROVER, JJ.] Income-tax Act. 1922, ss. 22(1), 22(3) tmd 22(2A )-Voluntary re-urn •howing /os~ filed after sltltutory period laid down ins. 22(1)-Benefit of s. 22(2A) whether can be given to assessee-Whether loss can be carri-ed forward-J?eturn whether can be treated as one under s. 22(3). The assessee was a private company incorporated under the Indian Companies Act, 1913. In January 19$6 the company voluntarily filed returns under s. 22(3) of the Income-tax Act. 1922 showing losses for the assessment years 1953-54 and 1954-55. No .1otice had been served on the company under ·s. 22(2) of the Act. The Income-tax Officer held that since the returns had been filed after the statutory period the com-pany was not entitled to carry forward the losses 'for both the years in the subsequent assessments. The Appellate Assistant Commissioner dis-missed the company"s appeal ano its apJ?lication for condoning the delay in filing the returns in question. The Tribunal held that the company was not entitled to the benefit of carrying forward the losses as it had not filed the returns in accordance with s. 22(2A) of the Act. The High Court, in reference, held that a voluntary return showing loss could be validly filed at any time. before assessment was made on the strength of the provi-sion ins. 22(3) of the Act and the assessee was entitled to have such loss carried 'forwud under s. 24(2). The Commissioner of Income-tax appeal-ed to this Court, HELP : Per Hegde and Grover, JJ .-The appeal must be dismissed. (i) In view of this Court's decision in RtUrchhoddas Karsondas's case the Income-tax Officer could not have ignored the returns and had to de-termine the losses shown by the assessee. Section 24(2) confers the benefit of losses being set off and carried forward and there is no provi-F sion in s. 22 under which losses have to be determined for the purposes of s. 24(2). Section 22(2A) does not place any limitation on that right. It simply says that in order to get the benefit of s. 24(2) the assessee must. submit his loss return within the time specified by s. 22(1). That provi' sion must be read with s. 22(3) for the purpose of determining the time within which a return ha.s to be submitted. It can well be said that s. 23(3) is merely a proviso to s. 22(1). Thus a return submitted at any time be'fore the assessment is made is a valid return. In considering G whether a return made is within time sub-s. (I) of s. 22 must be read along with sub-s. (3) of that section. A return whether it is a return of . income, profits or gains or loss must be considered as having been made withir• the time prescribed if it is made within the time specified in s. 2:13). In other words if s. 22(3) is complied with s. 22(1) also must be held to· have been complied with. If compliance has been made with the latter provision the requirements of s. 22('.!A) would stand satisfied. f463 F-H; 464 A-BJ (ii) The argument that a great deal of inconvenience will result of a voluntary return can be entertained at any time in accordance with A s. 22(3) when loss is involved and in order to give the assessee the benefit of the c•rry forward of the loS> a number of assessments would have to . be reopened, could not be accepted. A voluntary return cannot in any case be filed beyond the period specified in s. 34(3) of the Act. It cannot be overlooked that even if two views are possible the view which is favour-able to the assessce must be accepted while construing the provisions of a taxing statute~464 C-D] Commi"·'loner of lnmme-tax, Bombay City v. Rand1/Joddas Karson-dM,,; 36 J.T.R. 569, applied. R11dl1t1kri.,/11111 R11ngta & Ors. v. Seventh Income-tax Officer C-JJ Ward, Bmnhay, 49 1.·1 .R. 846, approved. MIAHT MYA, TAs SY Fett ewan Hradt (nrgaz) fafaze [The Commissioner of Income-tax, Punjab Kulu Valley Transport Co. ( P) Ltd.](30 31%, 1970) (Fato Ho ato RTE, Ho Wao RTE AIT To UAo waz) gfesaa genndaa deez, 1922(1922FT 11) —8TT 22(1),,22(3) we 22(20)erat 22(1) F airafad araat .SrerafaB qeara efe afer WA are cafes faacot at wee featmartare 24(2)arfrat at gaat wea ate SE ata BTAmT Baal Tae Brat s—faaicn far wea a ga feel w aaasega at we faacit fafaara fare gi are 22(8) aTagoraergata featfear wat arat & zg al ag araat attr fe are. 22(1) aT at mataaa atfagra—aet fedt siren fafa & Fmaraat aaa gt agi ga sieeator et eaters fear sat afer-at freatfcat & at As|. _[Pratfeat][ gfsar][ seri][ Gaz,][ 1913][ &][ ada][ frafaa][ wae][ sede]ard:waqd,1956F aeodt F gewn eaq daz, 1922 stara22(3)% adacafeonfaacinatorga. atfeatfrat ay 1953-54, 1954-55 -& fau afaat afaa at 7e attRaz aT are 22 (2) & ata weal ae feetgaatst attawat at 1E HtaTTHT afaare 3 ae afafaattca frat fie alts Cfaaefirat araat areata BH Tea HET A TE x Ha: Dat A aah Ffac afaat at ceataadtfaster & asta vet fear at aaa |agian argad (aia) a arady at adie att senta faarfoat area«RRA faerre ay soafaa wet are area At anfeay Ft fearafar tag afafraifer fear fe werd fat at waiter UteBae at Hat aal F wah gat dae Bt ara 22 (2a) F ayZarxfaaeirat great vet at el fade fee oA TK Sea TTT Aesafafraifea frat fe tae Barer 22 (3) H saad Harare ae aft,-aha ext ait cafen farwit frat a ga fretat aaa fafiareaBq & Gree Ht at aa A alte Fraifet are 24 (2) ¥ afta Tet7alfa at ada wt aHar esta fia F fees arrar agedFA gaaaaH aster HT1 ails arheTBt VT,a after tita—orsisara HAT STS arer ATA Bl eaTT F Tad ETararat afar ay facet at ster wal HAT afar aie sa fratfeatare afaa gifsat ar aaaren wear arfee1) are 24 (2) atfaal atBAT SAa aedta HA HI GAT sa Ha Fate are 22 FVar ere sraey wel S fresh seta ara 24 (2) ¥ sata arfHT AAT HAT SAT F 1 TVA A Ter seTeT SlaT F Fe 3g g fH FATqe 22(2U) va afar ae ate frararat afeafaa Bw zg, FeSTA, Me ate a as Haat & fe aa 24(2) Hr Bazar seq HW_o faatontfag faratfedt eat aifge at are1 Ta 22 arr (1) aT 4 AaTTTTT fafafese SMA aaa & Tatras dae aret fas arf Alaz attfare ar art %, sa staeq at are 22(3) Fara oer araafer i stad er a ag Hear aT awa & fH ara 22 (3), are 22(1}.el Teqe ara gga gare fasten faa am a ga feet Ht anaa we faacot fafanrea feat 31 ae faare wet aaa fH zat at 1gfaacoht ana % ataz , are 22 AY saa (1)et va ae aTsre (3) & ara cer sar afer 1 fret faacoht F eA, ae,agara, aim saat afrara ar era at fart a, wearer art afee | *arat ag fafga ane & dtax at ve 3, af are 22 (3) # fatafaceana & fazwe St gat TelH afe ara 22 (3) A AAIfrat sat & at are 22 (1) F eH AYmeafafaaifca fear STAT 2076 2 aeaerm earate fara afaar = [1974] 3 THe fato Ho afer fe saat aqaerat frat war @| afe ceaq afaa yoaer atemanat fear mare at arr 222(20) a wdenat at git &arat & 1 (Fer 20)*aeae fr afe are 22(3) % aaa, cafas faacoit a fat atgaa eater fear at amar 2 at sae aga agfae Ash, card aaaa fe are aadfad a ate favtfedl at af agate eet at Graa fac agr a fratotat ga: qe ner amwfow fazeafafaan at are 34 (3) F fafatese srarafa % oearq Greet al at.oT aaa| eA Aaa Ht MaeeAT al HY aT aH fe ate at efocwteraraq fat HUM Baa H sraeat ar aatrara Hwa AAT sa @fee-aro ay eaters fear sar arfaq a faathedt F agar St(Ft 21)vararferafa ame (faeeaa fara)— saga (20)Hafe agafa 8 apart F Brae Ht BHAT Favs Teme BT A ag afore s PRU 10s wha aafnaars Fhe B altar garg we etfs F gags F afrare ar Ta Fat TATfear ot apart @ afe cafeon faazoit saerer (1) # fafafase srenafir& WaT wea at oresi grave (3)at ge wre at garoT apat gfe gat sre(20) aaafrafra faaerat¥arayeag area faafera 3 fe ora 10 F wet aa MA BT aNTAT SHSeer ae frac + hae Ten HY areatt afen arf aaarfea at seat «atc aren 24 (3) &oaeita aifat reat fared fir fratfedt oae«(Radia HAH aaT st ah1 ate arfaa wre feat soarer (1) Fmeaty TIT Faq SF Harn a feed any war HT welgsatSTMT (20) F wg wt sataa gu aal Saraft at fare HAAee F afrare at a fraeaat aaawat ¢, Vas AAT eq STFafafian % carat FH anagifce afteatnt ayaarat arafe sa° eqrarerr & oil faafarer 8 se eax Far are at HeaTAT STATA (1)Be TAs os aqaea A faaiy aa se cata ait.wa va seargact agi a fautfa etat arer sie at ae sifaeanfeatBAA, VS Teale GA HATA HVAT Ft aga a ga ast F arafrag€ at gaa wee at fees)(ge 11).| ¢Star fe cuss ae HAT aa ae ATA A RT ITAA A agafufaatterfrat fe ae aad fe wade diet A sae HA arefaazoht waar aifa we Het arelt feacoll wt errr afr aT Fagreetwy Haig: adt fear awarefe ae ar at fartatel aga aaa Tiare are aT ATA H ofrge efreator TAT yOfaegareata sant ae afana adl% fe fratfedt arer 22 (1) 4 fafatace &gear HIATTaaoatFB oe Tat air atevafeon frac oret HUH gee ae rat set awa sf ait,| mearheg BY oe ate aaaat aT| (F713) ay fee ag frvia ¢raraTaa aTfacia To Yo Gro WaT A are at F TMTlo Fo Wao AIS Hr & feat| Ato Fo ato area faaraa factafeat raranfacti ae— Ha aat aeane reat (sede) fafaes 4, fast ear gas TATAart Fal WT@, eftsar ean zee CaeaA au 12 (1)e adit=mare gaat a fafatace ararafis & wtaz frater ae 1953-54 ales1954-55 at aaa ara at faaefinat Gree aét at at1 oral, 1956 Faadt Fear: eT ataate fae ay seat F aaa F aTayart cae HTT aT eafeae faacfnat area at att fa 1,51,520 erataT 48,977 erat Ht at| arTHT aerare Fag Aa Tad HW BT erhaHl ATAU BU J ZHTT BL feat—. “ug elfa at area @ ate frac art ana % easaet et Te 21aa: aol af at ceagadt faatet F myateaHea HY Swart al faa: AAAGreet fear aTaTyA aat afsara & ata % fees agra aged(atta) % aaaata sega at ae 1 ga afeardl & fart wren wer} fare(aaa ahaS Bt Haat BY ora ATT He A ate farafafad aa oat Hetgu anteater az ai—|os **warer 22 (20) Rata & wg faawh aaa afefrarBe oases Fae qT 22 Ht stare (1) ¥% seta fart araot amar @ af ag are 22 at soarer(2c) F fafeat araat aaaBatata dt 21" 3. fetta aha X maaz afaau a ag afafratfea fat feegqare (20) ¥ ga afefaaa & ait sca ga THT AT TT ATAag stare (1)% aia A ag feat31" 92 daa fafanrs fareat mafia teh faacoht at ary dar 2 a erara(1) % ata fatesafedtar ara & vat sige St od 21 aferen A ag sels AMAATcae & fe sane (1)Fata fart wer eet at gravatar ataae & are wega at ag ary at aifa sae Hoe aret cafes fraeit 2080) BeaaA eaTaAT faota aaa [1974] 3 3Ho fro qo at sree (3) Faela fact aaa sme ak vat ose aft aTATATW HTT 24 st Breer (2) F alla feat aT fer fas fHfraifedtva ama ag F a ams far ag a aT 4, faaifedt at sro at afaaeo 4 fatafafed setqma waararaa at trafata frat— faaifedtaT 1,51,520 % saat:1953-54BIH Ae ate 48,9771954-55 wae % BY fay grfrat * faarcit ar faa a z,faira} efeeFH aaerer feat oat ate gma caetae aT.are 24 (2) & aha aaeta fear arat wifera g 2” Sa TATT TAT AT aaTUAH Gat fear) saat agra 4THA UMATAT aT Aqaet TATA Sa AATaT A Adres als | 5. aT 22 at are (20) F, HY ae 22% 1953 at afatraywear 25 HY are 14 sre 1 AKA, 1952 F Tt WE st, ag saaeT Z— ta frat oatsa 4, faa Te sqaTe(2)% at FAT *onfe-étaitadt at ave 2, arearz, afa a eames arat aiafraray ate & adie feet ag toarat avar afaarateT aia"garg @, aftz gam fret art at teh aft argat ate ge aT 24al stare (2)% ata agita ate get, afe ag fretgeared[frater]aft at aadta wTHae aT eAAITBa 7 SITU (dL) F Hela J TY MITT Fat q fafaioe aa ~*~.* qa Fag ga THTT F— Commi.1.1io11er uf ARric11/111ral Income-tax v. Sultan Ali Gharami, 20 l.T.R. 432, Commissiuntr uf Income-tax, West Bengal v. Govindlal, 33 J.T.R. 630 and Ranc/1hoddas Karsondas v. Commissioner of income-tax, Bombay City, 26 l.T.R. 105, referred to. Per Shah, J. (Di.uentinR) :-The clause "if he is to be entitled to the benefit of the carry forward o·( loss" in sub-s. (2A) of s. 22 clearly means that the right to carry forward loss suffered under the head of income computable under s. JU may only be exercised if the voluntary return is filed within the period specified in sub-s. (I). Sub-Section 3 cannot be read as implying that notwithstanding the restrictions placed by sub-s. (2A) return disclosing loss of income computable under s. JO will not only be entertained but the loss.determined and declared under s. 24(3) so as to enable assessee to carry it forward. If a return of loss may be filed at any time in pursU&nce o·r a general notice under sub-s. (I), sub-s. (~A) will serve no purpose whatever. The limitation placed upon tl•• right to file return of lo~' i• clearly intended to ~void practical difficul-ties in the administration of the Act. If the interpretation placed by the Hiah Court be accepted, a tax-payer may avoid. making returns pursuant to notice under sub-•. ( J ) and when sought to be assessed in subsequent ye•rs he may claim to bring before the authorities transactions relating to many previous years which he has not disclosed. (458 G-H; 459 A-C] It wus certainly held by this Court in Ranchhodda.• Karsondas's case that a ~turn disclosing income below the taxable limit or disclosing such loss cannot be rejected by the Income-tax Officer as not being return of income but that does not mean that the assessee may after filing volun-tary return of IO!S income under the head "profits and gains of business" after the period specified in s. 22( I) clai.m that the loss be determioe,d and carried forward. [459 D-El Case-law referred to .. CIVIL APPELLATE JURISDICTION : Civil Appeals Nos. 859 and 860 of 1966. Appeals from the judgment and order dated April 6, 1966 of the Punjab High Court in Income-tax Reference No. 42 of 1962. 'Jagadish Swarup, Solicitor-Genera/ and 8. D. Sharma, for the H appellant (in both the appeals). 8. Sen, S. K. Dholakia and Vineet Kumar, for the respondent (in both the appeals). Ll2Sup.Cl[70-IS The Judt!uient of K. s. HEGDE and A. N. GROVER, JJ. was d•liver11d by GROVER, J.J. C. SHAH, J. gave a dissenting Opinion. Shah, J.. The Kulu Valley Transport Co. (P) Ltd.-hereinafter called 'the Company'--<lid not file returns of income in respect of the assessment year 1953-54 and 1954-55 within the period specified in the general notice under 11. 22 ( l) of the In-come-tax Act, 1922. In January 1956 the Company filed volun-tary returns disclosing loss of inco111e in the course of its business amounting to Rs. 1,51,520/- and Rs. 48,977 respectively for the two years in question. The· Income-tax Officer refu~ed to deter-mine the loss, observing- "This is a loss case and the return has been filed after the statutory time. . The Company is therefore not entitled to the benefit of carry forward of loss in the subsequent assessments. The case is, th~refore, filed." Against the order of the Income-tax Officer, appeals were pre-ferred to the Appell<1te Assistant Commissioner. That Officer D rejected the Company's reyuest for extension for filing the returns, and dismissed the appeals, observin11~ "The return made under s. 22(2AJ can only be taken to be a return under sub-s. ( 1) of s. 22 for the pufJJose of this Act, if it is made· within the satutory time prescribed in sub-s. (2A) of s. 22." “If any person who has not been served witha, noticeunder sub-section (2) ‘hassustainedalossof profitsor_.gains in any year under. the head‘Profits and gains ofbusiness, profession or vocation’ and such loss or any part-thereof would ordinarily have been carried fofward undersub-section (2) of section 24, he shall, if he is to be entitled to. the benefit of the Qarry forward of loss in any subsequentassessment,furnish e within , the ‘timespecifiedin the@ee % vhax agar de afafeaa aaa & vitae star fe araaz afrardt6fat ane Fargas et, Ha aTaT faa Be TATZfart & fafsa sea A atfaa at fafafteat get ofa A saraa fe gaa scare(1) & ate faacott a ati afe saatara ga afanan wae a afre ge atl a saat are F araaz& arfreariia ad 2 att ga afafaad & ad soar gel Tametry a aval ae soarer (1) F arefter A TE frat S 1” TA ZT sa% Tea Tsat H ATI TI sae (2) Fat adi ay. et 3 set farce sara (1)FA ae mere gaara fafafaseang & alae waar da afafeaa aaa FH alae Gree st aeh gs stat FHaaHt ayer wqara FLTrae (1) are fafgr aaa Fs ataATA ATRL afyardt gra age ae ana ah Wat Hata FT TEfaacot sqarer (20) at akearatly ar agora aval wet atx fratfedtae cat adt x axart Pe aif at aaareer fear are att seal aaafaat Fre| 6. freq sea rararaa aae afafraifer fear fe srarer (1) ®t fafaface ararafa & dla aa a aaa Grae Ht ag cafe farce at agate (3) Sadia wea at we farwt & ere gem fraatat afar wet gt ga H“areart, afa agar eqaare F Aral Bazarafraray’ eis s wettest aft at faqen fear ware) GTaaa aT ag eerste B fe ae 22 Ht sree (3) Tat faarioratal art ait & ag vat ara waar ata wee at Tea aR aE. general notice given under sub-section (1)or within suchfurther time as the Income Tax Officer in any case mayallow, all the particulars required under the prescribed formof yeturn of total income.........in the same manner as ‘hewould,have furnished a return under sub-section (1) hadhis income exceeded the maximun amount not liable toincome-tax in his case, and all the provisions of this Att shallapply as if it were a return under Sub eection (1)...' 2082 Team araray fra after = [1974] 3 THe Fito qo a eaos BTS ara saTT (2) F alte gaanagar FaTe a ate ga From ale farce are 22(1) are fafer wrarafs afa FIST Bet Haat s ate vat aft sae at we 2 at oaHX rare Ta ht Hr LT THT Ha Ber H fre arag & faafe ee armel ag F onefa fear ot ae1 se freee gc agayHeeTeareefer ea B mrawe aTyaR, Beas TAT Ll aa ToSTSaTaRATATAT WT TANF SAI Ae ger gary araat wane wferara,aI ats, Frage area ATA HY aera fear 2° 7. Wa ag fat gf sea eq are aa fers aT:way Fel aT oT ana, ag faatfedt fray “przarz, afa azarafarat” atte & ait eft garg & afte fora ge seat (2) & arfgaat at arate wat at we 2, frater & feet cearqadt ad F artaat aaa wer & fearq ag a aa’, srarer (1) Fate araqa # fafatece ana & Hae quar wa aaa ¥ Mat tar fe arrafaarel sttt agar HTT se eft at THE HA eu fated =a F faaeiteat afer| stare (2) % ata gaa ar aaa T He ET FETal we faarcit ait araret qaar a fafafese saan agro ae aag &are Brat Bt Te fart & sete freifedlgifsamagat sr arawel BCAA | Seq aTATA sre aaa far aT aftcato & sree (27)fast at aTdtF1 The Income-tax Appellate Tribunal in second appeal held that the expression "all the provisions of this Act shall apply as if it were a return under sub-section (-1)" in sub-s. (2A) only applies to a vaTid return i.e .. return which is filed within the time-limit prescribed under sub-s. (I ) .. The Tribunal rejected the contention that a voluntary return disclosing loss of income sub-mitted after the expiry or the perio<l for filing a return under .sub-s. (1 ) may be deemed to be a return under sub-s. (3), and the loss disclosed therein must be determined under sub-s. (2) of s. 24 to qualify the assessee to carry it in the following year. At the instance of the assessee the Tribunal referred the following question to the High Court of Punjab : "Whether the losses. of Rs. 1,51,520 and of Rs. -48,977 return.ct by tlie assessee in January 1956 for the assessment years 1953-54 and 1954-55 respec-tively require in law to be determined and carried for-ward under s. 2-4(2) of'the Income-tax Act ?" The High ·Court answered the question in the affirmative. The Commissioner of Income-tax has appealed to this Court with certificate granted by the High Court. Sub-section (2A) of s. 22 which was added to s. 22 by s .. 14 of Act 2S of 1953 with effect from April I, 1952, provid~s: "If any person who has not been served with a notke under sub-section (2) has sustained a loss of profits or gains in any year under the head "Profits and gains of business, profession, or vocation", and such loss of any part thereof would ordinarily have been carried forward under sub-section ( 2) of section 24, he shall, if he is to be entitled to the benefit of the carry forward of loss in any subsequent assessment, furnish within the time specified in the general notice given under sub-section ( I) or within such further time as the Income-ta.x Officer in any case may alk,w. all the particulars re· quired under the prescribed form of return of total D income . . . . in the same manner ·as he would have furnished a return under sub-section ( l ) had his income exceeded .the maximum amount not liable to in-come-tax in his case, and all the provisions of this Act. shall apply as if it were a return under sub-section (I ) :· E On the plain words used by the Parliament, sub-s. (2A) applies only where the return is. filed within the time specified in the general notice under sub-s. ( l) or within such further time as the Income-tax Officer may allow. A return not filed within the time prescribed l>Y sub-s. (I) or time extended by the Income-tax Officer does not comply with the requirement of sub-s. (2A ). and F the assessee cannot claim that the loss be detennined and carried forward. The High Court however held that a voluntary return filed after the expiry of the period specified in sub-s. (l) but before·the assessment is made must still be entertained as a return filed under G sub-s. ( 3), ev~n if it returns a loss of income under the head "'Profits and gains of business, profession or vocation". In the view of the High Court, sub-s. ( 3) of s. 22 applies to all returns whether disclosing profit or loss, and whether made voluntarily or pursuant to a notice under sub-s. (2), and on that account even if the return is filed beyond the period prescribed by s. 22 ( I ) . and discloses a loss the Income-tax Officer was bound to determine the H loss so that it may be carried forward in the following year. In reaching that conclusion the High Court purported to rely upon Commissioner of Tncome-tax, Bombay City TT v. Ranclzlwtlas u7sup.CI/70-l6 · -§ seq araraa fra freng ae agare gaa ag ara fgafara -_ote aft & aaa % afeare ar, fra stare (20) & afrerzT wTH frafera fare &, fire ft orarer (3) & atta sate fear oa awa@ 1 ae AAT Ped gu fe ear sea carqraa gra ufwersa afscaroMAT S, 1953 F afafraa gear 25 grt are 22 er aaa HATAqa saarr & att emareal & fated &ofe Sea" wearWas Fl MT 22 % aaletF qd saat fedaa awa gu ag, _ atafrattce fear aan ar fe arare gaat & fafatzee ararafis ® are * 36 ago do ato 569.? 49 argo cto arto B4QOe Bet st TS faa, afe ae fran ww a ga siege at et safeeat ard gemma afraay & afsa aa srea fear an zg at aqt tae F sara F maT TaTsl at oat afert ga war.avert fade fafaasa2 fe rar ge HY ar awa aT see HAavait faacinrat afar TTS GIgT Ht AT THAT Fl Mo THo WAT WATaay wast maa Hag afafraifea fear wat fe HC a Be mTafiaaa & ea ara whe HUA Te frawit us faferara faa g|aie araTt saad FATT Ge AH RAHTTs Sea TMT TCsftwa ema fear S| Ta TSaTa SLAMATA ATAN? BTTTA“% grag sea areas a oweNa ga gd ag afatratfea fear fe gnadae tae al are 12(1) Rater area Aaa} Gata Aue satJHA TA THE HA areal cafeaH STA a ws faaroh fataaiea fervorhag te rae g, faa Prsifedt ag araar 3 fs ag saat at ataat sfafafica wut & ate ag fe are 22(1) ¥ aes AIT TAA Fwaa H ygar. gem cag dae starr22(2) F ata qaar H sara% fracoit are 22(3) % arare az fasten a qa feet wt ana Greetat oral1 frafer & ge eaewat a ws fart ar arrax afsaregra aaadar adt at ot aad)| cretesata Hramara are aTAT% faaifedt % are 22(2) & afta gaa} faa ara at faavolt Faeae orca afm & am afreq ag area Oe faciart& vat or fad faatfedt F aifh wae at a Healt we SaazETwert ftfate aay arant araaa, agra’ F fastfedt ata a" prtre22 (2)B® acta gaa} aqaca # eqrr”feacot aatiaaat afr$F gan aq teest ara22 (1) %ada-aoa ay are at “ayer”BTA arya aT| GAR IAT TT CHTtae at ara 34% ata game ar farsiaea a far sraarfeat 1 32 argo do arto 458.2 20 argodo areo 439. 8 36 argo ao arte 569. * 23 agedro arte 82. 2084 wear rarer fitvia afaat =» [1974] 3 THo fo To Ue at rg frat art F araaz afeard ar ag fara at fe ag frator@ wv (az) Teg1 SaH TRAE fasifedl & ae arar fear fe aw arega a oat at at aft sary TE Ft Tas se 34 F alae ariaral Feae fear atat arfar ate Cat aifs sara % far aasra Ht altwifey ak va aa FA BT at oat arfgg ate TT va ag F fae§ saaifta at are free fru are 34% ata qaar ore at we ottHa Set qT A ay aR Ra gee oe fafafeaa feo at Teigarg sel S11 Ts AAT Ha AAA A ata Hl TE GAGA«FRAT ETAT TATA ATRL WIAA, ARTA! A ga earaq A 7gafafaaifea frat fe met fret fratfett A arma& feet ae gear gz:alg ag, aT AIA afraraA Trea BA ee Ms fact A A ste sasGATT MT 34H ela watafeat we at TE a agar sa mdanfeatSaar F fraifedl ag erat ady at amar fe qaadf ad at ag afaaa att afafatad at art mfgr1 ges 85 att 86 FT FIIMATa ae Ra saa feat—| cafafaaa Htar ag side adie ot fraifed) at arf_& afafafaa agar aafa ae ar gHart gare, aaa fe arf% art F ay araaral a at areal Bt1 a THTe aT 24(1) F.~ada aft at ara, ary agar afuena & face gore frat atapa g att staat (2) Fade aft ¥ afate a var eoatng aah & are oe armatt ag Fo aadta fear et aH|O1 ee faara ga 8 tet ag aa aes Tt agar at CO- aaa gfg aa soe “eis at (2) stare Fada (1) af Sata at aa ged aaaXe fear _aw ar 4feat aT apa st ae Fae se za A “ga waz Bae a fratTar aT adie fear aT aHAT SI HT: eA TITTA 61) wTAT TAT SATA| sree (1)Fag yoda gfe Tei wre fratfedtarer 6.afta afta & acta feet ag Fo arat agar afpeapat at aft 123 argo fyoatto 82 BOON ot7™=— gorat 2 ag alfa aA ea A “Sa ae A fad aa ae Faitatt aa & oat azar afamal & fees gor Het ar” ar| Aa: FHM BT BS TAT Bor sl A Ta Agareas @ fe—(1) aero Haina tet F 8 cH ar afaa BRETT ar eae arta art afer, atx (2) feet wear ate Fala arg wa aaar afaara dar arfer | gaat ag as ge fs ra Pet ate & ata facge at are ara aval oat tal ate et aet a fag fase ga as A aft at are fearen aaat gat aa ae stare (2) ary vet Stat” Karsondas(') and Radhakrishna Rungta & Ors. v. Seventh Income-tax Officer, C-ll Ward, Bombay([2]). The view expressed by the High Court cannot, in my judg-ment be sustained. The assessee who has sustained loss. of inco~e under the head "Profits and gains of business, profession or vocation" and who has not been served with a notice under ~ub-s. ( 2) may qualify for carrying forward the loss in any sub-sequent year of assessment must furnish within the time specified in the general notice under sub-s. ( I ) or such time as may be extended by the Income-tax Officer a return in the prescribed form disclosing that loss. Under a return filed not in compliance·with a notice under sub-s. (2) disclosing loss and filed beyond the time specified in the general notice. or extended time, the assessee can-not claim to carry forward the loss. The view expressed by the High Court _renders sub-s. (2A) otiose. It is implicit in the conclusion reached by the High Court that . the right to carry forward loss which is expressly restricted by sub-s. (2A) may still b.e exercised under sub-s. ( 3). In deter-. mining whether the view expressed by the High Court is pennis' si ble, it is necessary to refer to the decisions of the Courts under s. 22 before it was amended by Act 25 of 1953. It was held in interpreting s. 22 before it was amended that a return filed beyond the period specified in the general notice, if filed before the assess-ment is made, must, if it disclosed profit exceeding the maximum exempt from tax, be dealt with according to the provisions of the Act. There was a coiiftict of decisions on the question whether a return could be filed voluntarily disclosing income below the limit of exemption. In P. S. Rama Iyer v. Commissioner of Income-. tax([3 ]) it·was held that a return disclosfog profit below the maxi-mum exempt from tax was a valid return : the Calcutta High Court in Commissioner of Agricultural Income-tax v. Sultan Ali(') expressed a contrary view. This court in Ranchhoddas Karson-das's case('), agreeing with the Bombay High Court held that a return disclosing income below the taxable limit submitted volun-tarily in ~swer to the general notice under s. 22 (I J of the Income-tax Act is a good return : it is a return such as the assessee considers represents his true income, and that a return in answer to the general notice under s. 22(1) or in.answer to a notice under s. 22(2) of the Income-tax Act may by virtue of s. 22(3) be filed at any time before assessment. A return voluntarily made bef~re the assessment cannot be ignored by the Income-tax Officer. In Ranchhoddas Karonda' s case(') the assessee had returned without a notice under ·s. 22(2) income which was less than the (IJ 361.T.R. 569. (2) 491.T.R. 846. (3) 32 l.T.R. 458. (4) 20 I.T.R. 432.