SATHAPPA TEXTILES (PRIVATE) .LTD. vs SECOND INCOME-TAX CIRCLE II, — 1971 PTD 444

Citation: 1971 PTD 444

Court: Madras High Court

Year: 1970

Decision Date: 1970-12-31

Parties: SATHAPPA TEXTILES (PRIVATE) .LTD. vs SECOND INCOME-TAX CIRCLE II, JUDGMENT

Headnotes

Case cited as 1971 PTD 444

Judgment Text

Court Name: Madras High Court Judge(s): K. Veeraswa mi, Ramaprasada Rao Title:SATHAPPA TEXTILES (PRIVATE) .LTD. vs SECOND INCOME-TAX CIRCLE II, JUDGMENT Reported As: 1971 PTD 444 Result: petition is allowed Judgment JUDGMENT VEERASWAMI, J.-The question in this petition relates to the propriety of the rejection of the return filed by the petitioner before the first respondent as out of time under section 22(2-A) of the Income-tax Act, 1922. The petitioner, which is a private limited company, filed a return on April 1, 1961, for the assess--ment year 1960-61, the corresponding accounting year having ended on March 31, 1960, in which it showed a loss of Rs. 22,562 under the head of "business". This did not include unabsorbed depreciation and development rebate for the year. The petitioner showed in the return the figure of unabsorbed depreciation. But it is not clear whether it also included in it development rebate. But that is a matter for factual determination by the revenue. We are only concerned with the correct principle that should be applied to a return of this kind. This Court in Commissioner of Income-tax v. Speed-A-Way (P.) Ltd. ((1967) 65 I T R 351), the judgment in which is reported as an Appendix to Sri Hari Mills Ltd. v. First Income-tax Officer ((1967) 65 I T R 348), held that carrying-forward an unabsorbed depreciation did not fall under section 24(2) and did not, therefore, depend upon compliance with section 22(2-A). The view also was expressed that the…

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